Comprehensive analysis of movement options for #USDX vs EUR/USD & GBP/USD & USD/JPY (Daily) on July 2020

Minor operational scale (Daily)

The "top" of the summer - options for the development of the movement for #USDX vs EUR/USD & GBP/USD & USD/JPY (Daily) on July 6, 2020.

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US dollar index

From July 6, 2020, the movement of the dollar index #USDX will be determined by the development and direction of the breakdown of the boundaries of the equilibrium zone (96.90 - 97.40 - 97.90) of the Minute operational scale fork - see the animated chart for details of working out these boundaries.

In the breakdown of the support level of 96.90 in the lower border ISL38.2 equilibrium zone of the Minute operational scale fork, with subsequent breakdown of the final Shiff Line Minute (96.50), it will be possible to update local minimum of 95.72 and the achievement of the dollar index of the channel borders 1/2 Median Line Minute (95.20 - 94.80 - 94.40) and equilibrium zone (94.40 - 93.20 - 92.00) of the Minor operational scale fork.

Sequential breakdown of the resistance level of 97.20 on the top border ISL61.8 equilibrium zone of the Minute operational scale fork and the initial line SSL (98.10) of the Minor operational scale fork will do the actual continuation of the upward movement #USDX to the starting line SSL Minute (99.55) and warning line UWL38.2 (100.56) of the Minor operational scale fork.

The layout of the #USDX movement options from July 6, 2020 is shown on the animated chart.

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Euro vs US dollar

The single European currency EUR/USD from July 6, 2020 will continue to develop its movement depending on the development and direction of the breakdown of the borders of the 1/2 Median Line channel (1.1195 - 1.1250 - 1.1320) of the Minute operational scale fork - details of movement inside the channel 1/2ML Minute are shown on the animated graph.

The breakdown of the resistance level of 1.1320 at the upper border of the channel 1/2 Median Line in the Minute operational scale will determine the development of the upward movement of the single European currency to the goals:

  • initial SSL line (1.1380) of the Minute operational scale fork;
  • maximum 1.1422 - 1.1495.

In the breakdown of support level of 1.1195 at the intersection of the lower border of the channel 1/2 Median Line Minute with the Median Line Minor (1.1195) will make possible the development of the downward movement of the EUR/USD to the lower border ISL38.2 (1.1095) equilibrium zone of the Minor operational scale fork with prospect of a continuation of this movement in the zone of equilibrium (1.1095 - 1.1000 - 1.0950) of the Minute operational scale fork.

The EUR/USD movement options from July 6, 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 July 6, 2020 will be due to the development and direction of the breakdown of the range:

  • resistance level of 1.2465 - the lower border of the channel 1/2 Median Line of the Minute operational scale fork;
  • support level of 1.2380 - upper bound of ISL38.2 balance zone of the operational scale fork Minute.

Breakdown of the resistance level of 1.2465 - the development of the movement of Her Majesty's currency will occur inside the 1/2 Median Line channel (1.2465 - 1.2560 - 1.2635) of the Minute operational scale with the prospect of achieving goals:

  • UTL control line (1.2690) for Minor operational scale forks;
  • local maximum 1.2812;
  • UTL Minute control line (1.2910).
  • with the ability to reach the warning line UWL61.8 Minor (1.3110) and maximum 1.3199.

The breakout of ISL38.2 Minute - support level of 1.2380 - will determine the further development of the GBP/USD movement already in the equilibrium zone (1.2380 - 1.2260 - 1.2160) of the Minute operational scale fork with the prospect of updating the local minimum 1.2073 and reaching the boundaries of the channel 1/2 Median Line (1.2025 - 1.1815 - 1.1595) of the Minor operational scale fork.

From July 6, 2020, we look at the GBP/USD movement options on the animated chart.

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US dollar vs Japanese yen

The development of the movement of the currency of the "Land of the Rising Sun" USD/JPY from July 6, 2020 will be determined by the development and direction of the breakdown of the range:

  • resistance level 107.80 - lower border of the channel 1/2 Median Line Minute;
  • support level 107.20 - upper bound of ISL38.2 equilibrium zone of the Minute operational scale fork.

The breakdown ISL38.2 Minute - support level of 1.2380 - will determine the further development of the movement of USD/JPY in the zone of equilibrium (107.20 - 106.50 - 105.90) trading recommendations of the achievement of the channel borders 1/2 Median Line (105.70 - 104.40 - 103.10) of the Minor operational scale fork.

Breakdown of the resistance level 1.2465 - the development of the movement of the "Land of the Rising Sun" will occur inside the 1/2 Median Line channel (107.80 - 108.30 - 108.65) of the Minute operational scale with the prospect of achieving the goals:

  • SSL Minute start line (108.90);
  • upper bound of ISL61.8 (109.55) equilibrium zone of the Minor operational scale fork;
  • local maximum 109.86.
  • UTL control line (110.10) for Minute operational scale forks;
  • local maximum 111.72.

The marking of USD/JPY movement options since July 6, 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 - 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