Minuette operational scale (H4)
This week is the last week of February and then spring. So, what have we prepared the main currency instruments before spring?
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US dollar index
The movement of the dollar index #USDX from February 25, 2020 will continue to be determined by the development of the range :
- resistance level of 99.68 - warning line UWL38.2 of the Minuette operational scale forks;
- support level of 99.54 - the upper boundary of the ISL61.8 equilibrium zone of the Minuette operational scale forks
The breakdown of the support level of 99.54 on ISL61.8 Minuette will lead to the development of the #USDX movement which will then occur in the equilibrium zone (99.54 - 99.34 - 99.14) of the Minuette operational scale forks, with the prospect of reaching the starting line SSL Minuette (98.50) and the upper boundary of ISL38.2 (98.30) of the Minuette operational scale forks after the breakdown of ISL38.2 Minuette (99.14).
In case of breakdown of the warning line UWL38.2 of the Minuette operational scale forks - resistance level of 99.68 - option to continue the development of the upward movement #USDX to the targets:
- local maximum of 99.91 ;
- warning line UWL61.8 Minuette (99.9 7);
- final line FSL Minuette (100.22);
- warning line UWL100.0 Minuette (100.45).
The details of the #USDX movement is presented on the animated chart.
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Euro vs US dollar
The development of the single European currency EUR / USD movement from February 25, 2020 will be determined by the development and direction of the breakdown of the channel boundaries 1/2 Median Line (1.0800 - 1.0815 - 1.0830) of the Minuette operational scale forks. For details, look at the animated chart.
The breakdown of the resistance level of 1.0830 on the upper boundary of the 1/2 Median Line Minuette channel is the resumption of the upward movement of EUR / USD to the equilibrium zone (1.0850 - 1.0880 - 1.0905) of the Minuette operational scale forks with the prospect of reaching the lower boundary of the ISL61.8 (1.0990) equilibrium zone of the Minuette operational scale forks.
Alternatively, the breakdown of the support level of 1.0800 on the lower border of the 1/2 Median Line Minuette channel will lead to the continuation of the development of the downward movement of the single European currency towards the goals:
- local minimum 1.0778 ;
- SSL start line (1.0760) of the Minuette operational scale forks;
- control line LTL Minuette (1.0740);
- warning line LWL100.0 Minuette (1.0730).
The details of the EUR / USD movement options are shown on the animated chart.
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Great Britain pound vs US dollar
From February 25, 2020, Her Majesty's currency GBP / USD will continue to develop its movement depending on the development of the range :
- resistance level of 1.2920 - lower boundary of the 1/2 Median Line Minuette channel;
- support level of 1.2880 - the starting line of SSL of the Minuette operational scale forks.
A return above the resistance level of 1.2920 will determine the development of the GBP / USD movement in the 1/2 Median Line Minuette channel (1.2920 - 1.2945 - 1.2970) with the possibility of reaching (after the breakdown of the upper boundary of the 1/2 Median Line Minuette channel - 1.2970) the boundaries of the equilibrium zone (1.3000 - 1.3040 - 1.3075) of the Minuette operating scale forks.
On the other hand, the breakdown of the support level of 1.2880 on the SSL Minuette start line will make it possible to continue the downward movement of Her Majesty's currency to the local minimum 1.2848 and the boundaries of the equilibrium zone (1.2830 - 1.2775 - 1.2720) of the Minuette operational scale.
The details of the GBP / USD movement can be seen on the animated chart.
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US dollar vs Japanese yen
The development of the currency movement of the "country of the rising sun" USD / JPY from February 25, 2020 will continue depending on the development of the range :
- resistance level of 111.66 - lower boundary of the ISL38.2 equilibrium zone of the Minuette operational scale forks;
- support level of 111.25 - the ultimate Schiff Line Minuette.
The breakdown of the final Shiff Line Minuette - support level of 111.25 - will lead to the continuation of the development of the downward movement of USD / JPY to the boundaries of the 1/2 Median Line channel (110.40 - 110.10 - 109.80) of the Minuette operational scale forks.
In contrast, the breakdown of ISL38.2 Minuette - resistance level of 111.66 - will lead to the resumption of the development of the currency of the "country of the rising sun" in the equilibrium zone (111.66 - 112.10 - 112.55) of the Minuette operational scale forks with the prospect of reaching the final line FSL Minute (114.00).
We look at the details of the USD / JPY movement 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 major 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.
