Minuette operational scale (H4)
Well, how long will the decline last now? Here's the development options for the movement of the main currency instruments #USDX vs EUR / USD vs GBP / USD vs USD / JPY on March 18, 2020 in comprehensive form
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US dollar index
The movement of the dollar index #USDX from March 18, 2020 will be determined by the development and the direction of the breakdown of the range:
- resistance level of 99.91 - maximum of February 20, 2020;
- support level of 99.25 ultimate Shiff Line of the Minuette operational scale forks
The breakdown of the final Schiff Line Minuette (support level of 99.25) will lead to continuation of the movement of the dollar index to the boundaries of the equilibrium zone (98.20 - 97.60 - 96.95) and 1/2 Median Line channel (97.40 - 96.80 - 96.25) of the Minuette operational scale forks.
Meanwhile, in the case of the maximum update of February 20, 2020 (resistance level of 99.91), the upward movement of #USDX can be continued to the final FSL (100.30) and the warning LWL38.2 (101.40) lines of the Minuette operational scale forks.
The details of the movement marking of the dollar index from March 18, 2020 are presented on the animated chart.
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Euro vs US dollar
The movement of the single European currency EUR / USD from March 18, 2020 will also be determined by the direction of the breakdown of the range :
- resistance level of 1.1020 at the lower boundary of ISL61.8 equilibrium zone of the Minuette operational scale forks;
- support level of 1.1000 warning line LWL38.2 of the Minuette operational scale.
The breakdown of ISL61.8 Minuette (resistance level of 1.1020) will lead to the continuation of the movement of the single European currency in the equilibrium zone (1.1020 - 1.1105 - 1.1100) of the Minuette operational scale forks with the prospect of reaching the boundaries of 1/2 Median Line channel (1.1300 - 1.1360 - 1.1430) of the Minuette operational scale forks.
On the contrary, in case of breakdown of the warning line LWL38.2 of the Minuette operational scale forks (support level of 1.1000), there will be an option to continue the development of the downward movement of EUR / USD to the targets:
- warning line LWL61.8 Minuette (1.0940);
- final Shiff Line (1.0880) of the Minuette operational scale forks;
- warning line LWL100.0 Minuette (1.0840).
The details of the EUR / USD movement options is shown on the animated chart.
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Great Britain Pound vs US Dollar
Her Majesty's GBP / USD currency from March 18, 2020 will also continue to develop its movement depending on the development and direction of the breakdown range :
- resistance level of 1.2075 - final line FSL of the Minuette operational scale forks;
- support level of 1.1985 - warning line LWL238.2 of the Minuette operational scale.
The return of the instrument price above the final line FSL Minuette (resistance level of 1.2075) will lead to an option for the development of the upward movement of GBP / USD to the targets:
- warning line LWL161.8 (1.2185) of the Minuette operational scale forks;
- warning line LWL100.0 Minuette (1.2340);
- equilibrium zone (1.2450 - 1.2575 - 1.2700) of the Minuette operational scale forks.
Alternatively, the breakdown of the support level of 1.1985 on the warning line LWL238.2 forks of the Minuette operational scale forks will make it possible to continue the development of the downward movement of the currency of Her Majesty to the goals:
- warning line LWL261.8 Minuette (1.1920);
- warning line LWL38.2 (1.1870) of the Minuette operational scale forks;
- warning line LWL61.8 Minuette (1.1745).
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 March 18, 2020 will be due to the development and direction of the breakdown of the range :
- resistance level of 106.90 - upper boundary of ISL61.8 equilibrium zone of the Minuette operational scale forks;
- support level of 106.40 - 1/2 Median Line Minuette.
In case of breakdown of the 1/2 Median Line Minuette (support level of 106.40), the development of the currency of the "country of the rising sun" can be continued to the goals:
- 1/2 Median Line Minuette (105.70);
- lower boundary of ISL38.2 (105.15) equilibrium zone of the Minuette operational scale forks;
- lower boundary of ISL38.2 (104.50) equilibrium zone of the Minuette operational scale forks;
- 1/2 Median Line channel Minuette (104.00 - 103.00 - 102.00).
In contrast, the breakdown of the upper limit of the ISL61.8 equilibrium zone of the forks of the operational scale Minuette -resistance level 106.90 - continued development of the upward movement of USD / JPY to the goals:
- upper boundary of ISL61.8 (107.70) equilibrium zone of the Minuette operational scale forks;
- final Schiff Line Minuette (109.50);
- final line FSL (110.70) of the Minuette operational scale forks.
We look at the details of the USD / JPY movement on the animated chart.
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The review was compiled 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 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