Comprehensive analysis of movement options for #USDX vs EUR/USD & GBP/USD & USD/JPY (Daily) on July 27, 2020

Minor operational scale (Daily)

Options for the development of the movement #USDX vs EUR/USD & GBP/USD & USD/JPY - Daily from July 27, 2020.

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US dollar index

From July 27, 2020, the movement of the dollar index #USDX will be determined by the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (95.00 - 94.55 - 94.10) of the Minute operational scale forks - we look at the animated chart for details of how these boundaries were worked out.

In the breakdown of the support level at 94.10 on the lower border of the channel 1/2 Median Line of the Minute operational scale fork, the movement of the dollar index will continue to the boundaries of the equilibrium zones of the Minor operational scale fork (93.65 - 92.40 - 91.20) - Minute (93.15 - 92.40 - 91.80).

If the resistance level of 95.00 is broken at the upper border of the channel 1/2 Median Line of the Minute operational scale forks, it will be possible to develop an upward movement #USDX to the goals:

  • UTL control line (96.00) of the Minute operational scale forks;
  • initial SSL line (96.85) of the Minor operational scale forks;
  • local maximum 97.80.

The layout of the #USDX movement options from July 27, 2020 is shown on the animated chart.

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Euro vs US dollar

The single European currency EUR/USD from July 27, 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 (1.1530 - 1.1580 - 1.1630) of the Minute operational scale forks - details of movement inside the channel 1 / 2ML Minute are shown on the animated graph.

If the resistance level of 1.1630 at the upper border of the channel 1/2 Median Line of the Minute operational scale forks, it will continue development of the upward movement of the single European currency to the target line FSL (1.1660) of the Minor operational scale forks and zone balance (1.1710 - 1.1790 - 1.1880) of the Minute operational scale forks.

In case of a breakdown of the support level of 1.1530 at the lower border of the 1/2 Median Line Minute channel, the EUR/USD downward movement towards the LTL control line (1.1400) of the Minute operational scale forks will become relevant with the prospect of reaching the equilibrium zone boundaries (1.1330 - 1.1220 - 1.1120) of the Minor operational scale forks.

The EUR/USD movement options from July 24, 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 24, 2020, as well as the previous instruments, will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.2610 - 1.2700 - 1.2770) of the Minute operational scale forks - details of movement inside this channel are shown on the animated chart.

A breakdown of the resistance level of 1.2770 at the upper border of the channel 1/2 Median Line Minute, followed by an update of the local maximum 1.2812, will determine the continuation of the upward movement of the currency of Her Majesty to the equilibrium zone (1.3000 - 1.3120 - 1.3250) of the Minute operational scale forks.

A breakdown of the support level of 1.2620 at the lower border of the channel 1/2 Median Line Minute will direct the movement of GBP/USD to the control line LTL (1.2390) of the Minute operational scale forks with the prospect of updating the local minimum 1.2251 - 1.2073.

We look at the options for the movement of GBP/USD from July 6, 2020 on an 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 27, 2020 will be due to the development and direction of the breakdown of the boundaries of the equilibrium zone (106.45 - 105.80 - 105.15) of the Minute operational scale forks - the movement markings within this equilibrium zone are shown in the animated graphics.

A breakout of the lower border ISL61.8 zone equilibrium of the Minute operational scale forks confirm the further development of the movement of the currency "Land of the Rising Sun" in the channel 1/2 Median Line (105.40 - 104.10 - 102.80) of the Minor operational scale forks.

If the resistance level of 106.45 is broken at the upper border of the ISL38.2 equilibrium zone, it will be possible to reach the USD/JPY boundaries of the equilibrium zone (107.13 - 108.45 - 109.86) of the Minor operational scale forks and channel 1/2 Median Line (107.94 - 108.45 - 108.85) of the Minute operational scale forks.

The marking of USD/JPY movement options since July 27, 2020 is shown on the animated chart.

analytics5f1b0c886baea.jpg

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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.

The material has been provided by InstaForex Company - www.instaforex.com