2020 has started - what surprises could be in January? Here's a comprehensive analysis of movement options for #USDX vs EUR/USD vs GBP/USD vs USD/JPY (DAILY) for January 2020
Minor operational scale (daily time frame)
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US dollar Index
The movement of the #USDX dollar index for January 2020 will be determined by developing the boundaries of the 1/2 Median Line channel (97.35 - 97.15 - 96.90) and the equilibrium zone (97.35 - 97.65 - 97.95) of the Minuette operational scale. The markup is presented on the animated chart.
The breakdown of the upper boundary ISL61.8 (resistance level of 97.95) of the equilibrium zone of the Minuette operational scale forks will confirm the continuation of the upward movement of the dollar index to the boundaries of the 1/2 Median Line channel (98.60 - 98.95 - 99.30) of the Minor operational scale forks.
The breakdown of the support level of 96.90 on the lower boundary of the 1/2 Median Line Minuette channel together with the breakdown of the 1/2 Median Line Minor (96.80) is a variant of the development of the downward movement #USDX to the targets:
- initial SSL line (96.45) of the Minuette operational scale forks;
- lower boundary of ISL61.8 (96.20) of the equilibrium zone of the Minor operational scale forks.
The markup of #USDX movement options in January 2020 is shown on the animated chart.
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Euro vs US dollar
For January 2020, the development of the movement of the single European currency EUR / USD will also be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.1160 - 1.1133 - 1.1105) and the equilibrium zone (1.1120 - 1.1080 - 1.1045) of the Minuette operational scale forks. The markup is presented on the animated chart.
The breakdown of the support level 1.1045 on the lower boundary of the ISL61.8 equilibrium zone of the Minuette operational scale forks will make it possible to continue the downward movement of the single European currency to the goals:
- the final Schiff Line Minuette (1.1020);
- local minimum (1.0980);
- LTL control line (1.0935) of the Minor operational scale forks.
The breakdown of the resistance level of 1.1160 (the upper boundary of the 1/2 Median Line Minuette channel) is an option to continue the development of the upward movement of EUR / USD to the initial SSL (1.1230) and the control UTL (1.1255) lines of the Minuette operational scale forks.
The details of the EUR / USD movement options in January 2020 are shown in the animated chart.
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Great Britain pound vs US dollar
Range development and breakdown direction :
- resistance level of 1.3155 - 1/2 Median Line Minor;
- support level of 1.3090 - reaction line RL28.2 Minor ;
For January 2020, the development trend of Her Majesty's currency movement GBP / USD will begin to be determined.
In case of breakdown of the support level of 1.3090 on the reaction line RL38.2 Minor, the downward movement of the currency of Her Majesty can be continued to the boundaries of the equilibrium zone (1.2735 - 1.2515 - 1.2290) of the Minuette operational scale forks.
The breakdown of 1/2 Median Line Minor (resistance level of 1.3155) will make it relevant to continue the upward movement of GBP / USD to the boundaries of the equilibrium zone (1.3405 - 1.3800 - 1.4200) of the Minor operational scale forks.
The details of the GBP / USD movement in January 2020 can be seen on the animated chart.
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US dollar vs Japanese yen
The development of the movement of the currency of the "country of the rising sun" USD / JPY for January 2020 will also depend on the direction of the breakdown of the range :
- resistance level of 109.40 (1/2 Median Line Minor);
- support level of 109.00 (final Shiff Line Minor).
A consecutive breakdown of the 1/2 Median Line Minor (resistance level of 109.40) and the UTL control line (109.75) of the Minuette operational scale forks will direct the movement of the rising sun currency to the upper boundary of the ISL61.8 (110.50) equilibrium zoneof the Minor operational scale forks with the prospect of reaching maximum 112.40.
The breakdown of the final Schiff Line Minor - support level of 109.00 - the option of developing a downward movement of USD / JPY to the lower boundary of the ISL38.2 (108.45) equilibrium zone of the Minor operational scale forks with the prospect of reaching the boundaries of 1/2 Median Line channel (107.90 - 107.30 - 106.70) of the Minuette operational scale forks.
We look at the details of the USD / JPY movement in January 2020 on the animated chart.
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The review is made without taking into account the news background. Thus, the opening of trading sessions of the main financial centers does not serve as a guide to action (placing orders "sell" or "buy").
The formula for calculating the dollar index :
USDX = 50.14348112 * USDEUR0.576 * USDJPY0.136 * USDGBP0.119 * USDCAD0.091 * USDSEK0.042 * USDCHF0.036.
where power factors correspond to the weights of the currencies in the basket:
Euro - 57.6% ;
Yen - 13.6% ;
Pound Sterling - 11.9% ;
Canadian dollar - 9.1%;
Swedish Krona - 4.2%;
Swiss franc - 3.6%.
The first coefficient in the formula leads the index to 100 at the start date of the countdown - March 1973, when the main currencies began to be freely quoted relative to each other.
The material has been provided by InstaForex Company - www.instaforex.com