Minute operational scale (H4)
The third week of July - growth of the US dollar? Options for the development of the movement #USDX vs EUR/USD & GBP/USD & USD/JPY (H4) on July 20, 2020.
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US dollar index
The development of the movement of the dollar index #USDX from July 20, 2020 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (95.88 - 95.98 - 96.08) of the Minuette operational scale forks - see the animated chart for details of the movement inside this channel.
When the resistance level of 96.08 breaks at the upper border of the channel 1/2 Median Line Minuette, it will become relevant to continue the development of the upward movement #USDX to the borders of the equilibrium zone (96.40 - 96.60 - 96.75) of the Minuette operational scale forks with the prospect of reaching the UWL61.8 warning line (97.00) of the Minute operational scale forks.
When the support level of 95.88 breaks at the lower border of the 1/2 Medan Line channel, the Minuette operational scale forks, followed by the update of the local minimum 95.77- 95.72, will become relevant for the dollar index to reach the borders of the 1/2 Median Line channel (95.40 - 95.00 - 94.00) of the Minute operational scale forks.
The layout of the #USDX movement options from July 20, 2020 is shown on the animated chart.
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Euro vs US dollar
The development of the single European currency EUR/USD since July 20, 2020 will also be determined by testing and the direction of the breakout of the channel borders 1/2 Median Line (1.1440 - 1.1423 - 1.1407) of the Minuette operational scale forks - see the animated chart for details.
In case of breaking the support level of 1.1407 on the lower border of the channel 1/2 Median Line Minuette, the single European currency will continue its movement to the boundaries of the zones equilibrium of the Minuette operational scale forks (1.1355 - 1.1330 - 1.1305) and Minute (1.1345 - 1.1285 - 1.1220).
The breakdown of the upper border of the channel 1/2 Median Line of the Minute operational scale forks - resistance level of 1.1440 - and then updating the local maximum 1.1452, the upward movement of the EUR/USD may be continued to the line of control UTL (1.1500) of the Minuette operational scale forks and the initial line SSL (1.1555) of the Minute operational scale forks.
The EUR/USD movement options from July 20, 2020 are shown on the animated chart.
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Great Britain pound vs US dollar
The movement of Her Majesty's currency GBP/USD from July 20, 2020 will continue depending on the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.2610 - 1.2575 - 1.2530) of the Minuette operational scale forks - details of movement within this channel are shown on the animated graph.
A breakdown of the support level of 1.2530 at the lower border of the channel 1/2 Median Line Minuette will determine the development of the downward movement of GBP/USD to the local minimum 1.2479 and the boundaries of the equilibrium zone (1.2405 - 1.2342 - 1.2280) of the Minute operational scale forks.
If the resistance level 1.2610 on the upper border of the channel 1/2 Median Line fork operational scale Minuette confirm the continuation of the development of currency movements of Her Majesty inside the channel 1/2 Median Line (1.2575 - 1.2655 - 1.2730) of the Minute operational scale forks considering testing the local maximum 1.2669 and helpful line UWL38.2 Minute (1.2710).
We look at the GBP/USD movement options from June 20, 2020 on the animated chart.
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US dollar vs Japanese yen
And the movement of the USD/JPY currency of the "Land of the Rising Sun" from July 20, 2020 will depend on the development and direction of the breakdown of the channel boundaries 1/2 Median Line (107.10 - 107.30 - 107.45) of the Minuette operational scale forks - the traffic markings inside this channel are shown on animated graphics.
The breakdown of the resistance level of 107.05 on the upper border of the channel 1/2 Median Line Minuette upward movement of the USD/JPY will be allocated to the zone boundary equilibrium (108.00 - 108.30 - 108.60) of the Minuette operational scale forks.
If the support level of 107.10 is broken at the lower border of the channel 1/2 Median Line of the Minute operational scale forks, the downward movement of the currency of the "Land of the Rising Sun" may continue to the goals:
- control line UTL Minute (106.91);
- local minimum 106.66.
- LTL Minuette control line (106.55);
- warning line UWL38.2 Minute (106.25);
- with the prospect of updating the minimum 106.08 and reaching the upper limit of the channel 1/2 Median Line (105.85) for the operating scale of the Minute.
The markup of the USD/JPY movement options from July 20, 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.
