Minute operational scale (H4)
The end of June, the beginning of July - what's next? Development options for the movement of #USDX vs EUR/USD & GBP/USD & USD/JPY (H4) on June 29, 2020.
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US dollar index
From June 29, 2020, the movement of the dollar index #USDX will be determined by the development and direction of the breakdown of the range:
- resistance level of 97.40 - the lower limit of ISL38.2 of the balance zone of the Minuette operational scale forks;
- support level of 97.20 - upper limit of the channel 1/2 Median Line Minuette.
In the breakdown of support level of 97.20, the movement of the dollar index will arise in the channel 1/2 Median Line (97.20-97.05-96.85) of the Minuette operational scale fork, and if there's a breakout of the lower border (96.85) of this channel, the downward movement of the tool can be extended to a local minimum 96.39 and the channel 1/2 Median Line (96.20-95.85-95.45) of the Minute operational scale fork.
With the breakdown of ISL38.2 Minuette - resistance level of 97.40, the #USDX movement will continue in the equilibrium zone (97.40-97.60-97.80) of the Minuette operational scale forks. In the case of breakdown ISL61.8 Minuette (97.80), then the dollar index can continue to move to the upper border ISL61.8 (98.15) of the equilibrium zone of the Minute operational scale forks and the final line FSL Minuette (98.50).
The markup of #USDX motion options since June 29, 2020 is shown on the animated chart.
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Euro vs US dollar
The development of the movement of the single European currency EUR/USD from June 29, 2020 will continue in the equilibrium zone (1.1275-1.1205-1.1145) of the Minute operational scale forks, taking into account the direction of the breakdown of the range:
- resistance level of 1.1230 - control line LTL of the Minuette operational scale forks;
- support level of 1.1205 - Median Line of the Minute operational scale forks.
When the LTL Minuette control line is broken - the resistance level of 1.1230 - then the movement of EUR/USD can be directed to the goals:
- initial line SSL Minuette (1.1265);
- upper bound of ISL 38. 2 (1.1275) equilibrium zone of the Minute operational scale forks;
- ultimate Shiff Line Minute (1.1285);
- with the prospect of reaching the boundaries of the 1/2 Median Line channel (1.1370-1.1415-1.1460) and equilibrium zones (1.1430-1.1480-1.1530) of the Minuette operational scale forks.
In the case of a breakdown of the support level of 1.1205 on the Median line Minute, the downward movement of the single European currency can be directed to the local minimum of 1.168 and the lower border of ISL61.8 (1.145) of the Minute operational scale forks.
The EUR/USD movement options from June 29, 2020 are shown on the 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 June 29, 2020 will be determined by the development and direction of the breakdown of the range:
- resistance level of 1.2440 - initial line of SSL of the Minuette operational scale forks;
- support level of 1.2380 - control line LTL of the Minuette operational scale forks.
If the resistance level of 1.2440 on the starting line SSL of the Minuette operational scale forks will make it possible to achieve the currency of Her Majesty's borders of channels 1/2 Median Line of the Minute operational scale forks (1.2490-1.2565-1.2640) and Minette (1.2600-1.2670-1.2735).
Breakdown of the support level of 1.2380 at the control line LTL of the Minute operational scale forks with subsequent breakdown ISL38.2 Minute (1.2350) and update local minimum of 1.2335 will determine the further development of the movement of GBP/USD in the zone of equilibrium (1.2350-1.2240-1.2130) of the Minute operational scale forks.
From June 29, 2020, we look at the GBP/USD movement options on the animated chart.
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US dollar vs Japanese yen
From June 29, 2020, the development of the USD/JPY currency movement of the "Land of the Rising Sun" will continue in the 1/2 Median Line channel (107.55-107.05-106.45) of the Minute operational scale forks, taking into account the development of the boundaries of the equilibrium zone (107.45-107.20-106.95) of the Minuette operational scale forks - the marking of movement within the 1/2ML Minute channel is shown on the animated chart.
If the support level of 106.45 breaks at the lower border of the channel 1/2 Median Line Minute, it will be possible for the currency of the "Land of the Rising Sun" to reach the boundaries of the equilibrium zone (106.25 - 105.50 - 104.80) of the Minute operational scale forks.
The breakdown of the resistance level of 107.55 on the upper border of the channel 1/2 Median Line of the Minute operational scale forks upward movement in the USD/JPY will be allocated to the target line FSL (108.15) of the Minuette operational scale forks and the initial line SSL (108.40) trading recommendations.
The markup of the USD/JPY movement options from June 29, 2020 is 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 sterling - 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.
