Here's a comprehensive analysis of the development options for the movement of currency instruments #USDX, EUR / USD, GBP / USD and USD / JPY from October 4, 2019
Minuette operational scale (H4 time frame)
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US dollar index
From October 4, 2019, the development of the movement of the dollar index #USDX will begin to depend on the development and direction of the breakdown of the boundaries of the equilibrium zone (99.00 - 98.80 - 98.60) of the Minuette operational scale fork. The details are shown in the animated chart.
If the lower boundary of ISL61.8 (support level of 98.60) is broken, the equilibrium zone of the Minuette operational scale fork, the downward movement of the dollar index can be continued towards the targets - the start line SSL (98.30) of the Minuette operational scale fork - local minimum 98.14 - final Shiff Line Minuette (98.00).
The breakdown of the upper boundary of ISL38.2 (resistance level of 99.00) of the equilibrium zone of the Minuette operational scale fork - the development of the #USDX movement will continue in the 1/2 Median Line Minuette channel (99.00 - 99.15 - 99.30), and if the breakdown of the upper boundary (99.30) of this channel occurs, then it will be possible to continue the upward movement to the goals - the initial line SSL Minuette (99.60) - maximum 99.67 - the control line UTL Minuette (99.80) - the warning line UWL100.0 (99.85) Minuette operational scale fork.
The details of the #USDX movement are presented in the animated chart.
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Euro vs US dollar
The movement of the single European currency EUR / USD from October 4, 2019 will be due to the development and direction of the breakdown of the boundaries of 1/2 Median Line channel (1.0940 - 1.0965 - 1.0985) of the Minuette operational scale fork. We look at the animated chart for the movement markings inside the channel.
The breakdown of the upper boundary of the 1/2 Median Line Minuette channel resistance level of 1.0985) will make it relevant to continue the development of the upward movement of EUR / USD to the initial SSL line (1.1030) of the Minuette operational scale fork and the boundaries of the equilibrium zone (1.1040 - 1.1085 - 1.1125) of the Minuette operational scale fork.
On the contrary, the breakdown of the lower boundary of the 1/2 Median Line channel (support level of 1.0940) of the Minuette operational scale forks will determine the option to continue the development of the downward movement of the single European currency towards the goals - the initial SSL line Minuette (1.0905) - local minimum 1.0879 - LTL Minuette control line (1.0870) - control line LTL (1.0825) of the Minuette operating scale fork.
The details of the EUR / USD movement options are shown in the animated chart.
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Great Britain pound vs US dollar
Meanwhile, the development of Her Majesty's currency movement GBP / USD from October 4, 2019 will begin to occur within the 1/2 Median Line channel (1.2310 - 1.2440 - 1.2565) of the Minuette operational scale fork taking into account the working out of the boundaries of the 1/2 Median Line channel (1.2406 - 1.2465 - 1.2520) of the Minuette operational scale fork. The movement markup is presented in the animated graph.
If there is a breakdown of the upper boundary of the 1/2 Median Line Minuette channel (resistance level of 1.2565) with the subsequent update of the local maximum 1.2582 , then the upward movement of Her Majesty's currency can continue to the upper boundary of ISL61.8 (1.2530), the equilibrium zone of the Minuette operational scale fork and the lower boundary of ISL38.2 (1.2650) the equilibrium zone of the Minuette operational scale fork
The return of GBP / USD below the support level of 1.2310 on the lower boundary of the 1/2 Median Line channel of the Minuette operational scale - option for the development of a downward movement towards the targets - initial SSL line (1.2265) of the Minuette operational scale - control line LTL Minuette (1.2235) - local minimum 1.2204 - the starting line of SSL Minute (1.2010).
The details of the GBP / USD movement can be seen in the animated chart.
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US dollar vs Japanese yen
As further, from October 04, 2019, the movement of the currency of the "land of the rising sun" USD / JPY will continue to be determined by the direction of the breakdown of the boundaries of the equilibrium zone (107.40 - 107.15 - 106.90) of the Minuette operational scale fork. The movement markings inside this zone are shown in the animated chart.
The breakdown of the lower boundary of ISL61.8 (support level of 106.90) of the equilibrium zone of the Minuette operational scale fork will confirm the continued development of the downward movement of USD / JPY to the boundaries of the 1/2 Median Line channel (106.50 - 106.00 - 105.45) of the Minuette operational scale fork.
On the contrary, if the breakdown of the upper boundary of ISL38.2 (resistance level of 107.40) of the equilibrium zone of the Minuette operational scale fork occurs, then the development of the currency of the country of the rising sun will continue to goals - 1/2 Median Line Minuette channel (107.55 - 107.75 - 107.90) - initial SSL Minuette line (108.10) - UTL control line (108.20) of the Minuette operational scale fork - UWL38.2 Minuette warning line (108.40) - UTL Minuette control line (108.50).
We look at the details of the USD / JPY movement in 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 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 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.
The material has been provided by InstaForex Company - www.instaforex.com