Let us consider, in a comprehensive manner, how the development of the movement of currency instruments #USDX, EUR / USD, GBP / USD and USD / JPY will begin from September 20, 2019
Minuette (H4 time frame)
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US dollar Index
Further development of the movement of the dollar index #USDX from September 20, 2019 will be determined by the direction of the breakdown of the range :
- resistance level of 98.35 (lower boundary ISL61.8 of the equilibrium zone of the Minuette operational scale forks);
- support level of 98.15 (reaction line RL261.8 of the Minuette operational scale fork).
The breakdown of the reaction line RL261.8 Minuette (support level of 98.15) will determine the continued development of the downward movement of the dollar index to targets - a local minimum of 97.86 - the end line FSL Minuette (97.70) - the upper boundary of the ISL38.2 (97.55) equilibrium zone of the Minuette operational scale fork.
In the event of a breakdown of ISL61.8 Minuette (resistance level of 98.35), it will be possible to develop the #USDX movement within the equilibrium zone (98.35 - 98.55 - 98.75) of the Minuette operational scale forks and 1/2 Median Line channel (98.50 - 98.70 - 98.95) of the Minuette operational scale forks with the prospect of updating maximums (99.10 - 99.37).
The details of the #USDX movement are presented in the animated chart.
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Euro vs US dollar
The development of the movement of the single European currency EUR / USD from September 20, 2019 will also be determined by the direction of the breakdown of the range :
- resistance level of 1.1090 warning line UWL38.2 equilibrium zone Minuette operational scale fork;
- support level of 1.1060 upper boundary of the 1/2 Median Line Minuette channel.
The breakdown of the warning line UWL38.2 Minuette (resistance level of 1.1125) - option for the development of the upward movement of EUR / USD to targets - local maximum1.1110 - control line UTL (1.1130) of the Minuette operational scale fork - equilibrium zone (1.1145 - 1.1200 - 1.1250) of the Minuette operational scale fork.
The breakdown of the support level of 1.1060 will determine the development of the movement of the single European currency within the 1/2 Median Line channels of the Minuette operating scales (1.1060 - 1.1040 - 1.1017) and Minuette (1.1017 - 1.0990 - 1.0960).
The details of the EUR / USD movement options are shown in the animated chart.
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Great Britain Pound vs US Dollar
The development of Her Majesty's GBP / USD currency movement from September 20, 2019 will be limited to the equilibrium zone (1.2430 -1 1.2580 - 1.2730) of the Minuette operational scale fork, taking into account the working out of the Minuette scale operational fork - the layout of this development is presented in the chart.
If the upper boundary of ISL61.8 (resistance level of 1.2730) of the equilibrium zone of the Minuette operational scale fork is broken, then we can continue to the warning lines UWL100.0 (1.2770) and UWL161.8 (1.2950) Minuette operating scale fork.
On the contrary, if a breakdown of the lower boundary of ISL38.2 (support level of 1.2430) of the equilibrium zone of the Minuette operational scale fork is seen as more probable, in which case the downward movement of Her Majesty's currency can continue to the boundaries of the 1/2 Median Line channel of the Minuette operational scales (1.2400 - 1.2360 - 1.2310) and Minuette (1.2330 - 1.2245 - 1.2155).
The details of the GBP / USD movement can be seen in the chart.
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US dollar vs Japanese yen
The development of the USD / JPY currency movement of the country of the rising sun from September 20, 2019 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (108.20 - 108.00 - 107.85) of the Minuette operational scale (see the details on the chart).
The breakdown of the lower boundary of the 1/2 Median Line Minuette channel (support level of 107.85) is an option for the USD / JPY to reach the boundaries of the equilibrium zones of the Minuette operational scales fork (107.75 - 107.50 - 107.25) and Minuette (107.60 - 107.00 - 106.40).
In case of breakdown of the upper boundary of the 1/2 Median Line channel Minuette (resistance level of 108.20) will make it relevant to resume the upward movement of the currency of the "country of the rising sun" to the targets - the initial SSL line (108.60) of the Minuette operational scale fork - the control line UTL Minuette (108.70) - maximum 109.33.
We look at the details of the USD / JPY movement in the 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 the power coefficients 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.
