Minute operational scale (H4)
Current options for the development of movement for EUR/USD & GBP/USD (H4) on August 27, 2020.
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Euro vs US dollar
The development of the movement of the single European currency EUR/USD from August 27, 2020 will depend on the development and direction of the breakdown of the range:
- resistance level of 1.1830 - the initial line SSL of the Minuette operational scale fork;
- support level of 1.1810 - the final Shiff Line of the Minute operational scale fork.
A breakdown of the support level of 1.1810 at the final Shiff Line Minute will direct the development of the EUR/USD movement to the borders of the equilibrium zone (1.1790 - 1.1720 - 1.1655) of the Minute operational scale fork.
A breakdown of the resistance level of 1.1830 on the initial SSL Minuette line will make it possible to continue the upward movement of the single European currency to the borders of the 1/2 channel Median Line Minuette (1.1860 - 1.1890 - 1.1920) with the prospect of reaching the lower limit of ISL38.2 (1.1967) of the equilibrium zone of the Minute operational scale fork.
We look at the EUR/USD movement options from August 27, 2020 on an animated chart.
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Great Britain pound vs US dollar
The development of the movement of Her Majesty's currency GBP/USD from August 27, 2020 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.3180 - 1.3210 - 1.3240) of the Minuette operational scale fork - details of working out the borders of this channel are shown on the animated chart.
If the support level of 1.3180 breaks at the lower border of the channel 1/2 Median Line Minuette, the downward movement of GBP/USD can be resumed and will be directed to the borders of the equilibrium zone (1.3105 - 1.3070 - 1.3035) of the Minuette operational scale fork and channel 1/2 Median Line (1.3060 - 1.2980 - 1.2900) of the Minute operational scale fork.
If the resistance level of 1.3240 breaks at the upper border of the 1/2 channel, the Median Line Minuette will make it relevant to update the local maximum of 1.3266 and reach the control line UTL (1.3325) of the Minuette operational scale fork.
Details of the development of the GBP/USD movement from August 27, 2020 are shown on the animated chart.
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The review is compiled without taking into account the news background, the opening of trading sessions of the main financial centers and is not a guide to action (placing "sell" or "buy" orders).
Formula for calculating the dollar index:
USDX = 50.14348112 * USDEUR0.576 * USDJPY0.136 * USDGBP0.119 * USDCAD0.091 * USDSEK0.042 * USDCHF0.036.
Where the power coefficients correspond to the weights of currencies in the basket:
Euro - 57.6 %;
Yen - 13.6 %;
Pound - 11.9 %;
Canadian dollar - 9.1 %;
Swedish Krona - 4.2 %;
Swiss franc - 3.6 %.
The first coefficient in the formula brings the index value to 100 on the starting date - 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