We will comprehensively consider the development options for the movement of currency instruments #USDX vs EUR / USD vs GBP / USD on Wednesday, August 7, 2019.
Minuette operational scale (H4)
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US dollar index
We have here currently is the #USDX in 1/2 Median Line channel (97.25 - 97.55 - 97.90) of the Minuette operational scale fork. Respectively, the direction of breakdown of the above levels will begin to determine the further development of the movement of the US dollar index from Wednesday, August 7, 2019. Markup of options movements within the 1 / 2 Median Line channel of the Minuette are shown in the animated graph.
If there will be a breakdown of the upper boundary of the 1/2 Median Line channel (resistance level of 97.90) of the Minuette operational scale fork, then the upward movement #USDX can be continued to the equilibrium zone (98.10 - 98.40 - 98.60) of the Minuette operational scale fork.
On the other hand, the breakdown of the lower boundary of the l 1/2 Median Line channel of the Minuette operational scale fork (support level of 97.25) will confirm that further the development of the movement of the dollar index will continue in the equilibrium zone (97.40 - 96.90 - 96.45) of the Minuette operational scale fork.
The details of the #USDX movement are presented in the animated chart.
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Euro vs US dollar
Further development of the movement of the single European currency EUR / USD from August 7, 2019 will be due to the direction of the breakdown of the range :
- resistance level of 1.1200 (lower boundary of the ISL38.2 equilibrium zone of the Minuette operational scale fork);
- support level of 1.1170 (upper boundary of the 1/2 Median Line channel Minuette).
The breakdown of the support level of 1.1170 will determine the development of the movement of the single European currency within the 1/2 Median Line channel of the Minuette (1.1170 - 1.1140 - 1.1110) and the equilibrium zone (1.1140 - 1.1110 - 1.1075) of the Minuette operational scale fork.
Meanwhile, the breakdown of the resistance level of 1.1200 (ISL38.2 Minuette) will confirm that the development of the EUR / USD movement will begin again to occur in the equilibrium zone (1.1200 - 1.1255 - 1.1305) of the Minuette operational scale fork.
The details of the movement are shown in the animation chart.
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Great Britain pound vs US dollar
The development of Her Majesty's currency movement GBP / USD from Wednesday, August 7, 2019, will be determined by the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.2170 - 1.2210 - 1.2240) of the Minuette operational scale fork. Let's look at the animated chart for the options for this movement.
On the other hand, the return of GBP / USD below the support level of 1.2170 (the lower boundary of the 1/2 Median Line Minuette channel) will make it relevant to resume the downward movement of GBP / USD to the targets - 1/2 Median Line channel (1.2130 - 1.2100 - 1.2070) of the Minuette operational scale fork - the initial line SSL Minuette (1.2045) - control line LTL (1.2030) Minuette operational scale fork - control line LTL Minuette (1.1984).
On the contrary, considering that the resistance level of 1.2240 is broken (the upper boundary of the channel is 1/2 Median Line Minuette), then it will be possible to continue the development of the upward movement of Her Majesty's currency to the upper boundary of the ISL61.8 (1.2280) zone of equilibrium of the Minuette operational scale fork and to the zone of equilibrium ( .2290 - 1.2360 - 1.2430 of the Minuette operational scale fork.
The details of the GBP / USD movement are presented on the animated chart.
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The review is made without taking into account the news background. The opening of trading sessions of the main 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 power factors 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.
The material has been provided by InstaForex Company - www.instaforex.com