Minor operational scale ( Daily)
In the second half of September - is the correction complete? Another fall of the US dollar? Options for the development of the movement of #USDX vs EUR/USD & GBP/USD & USD/JPY on September 14, 2020.
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US dollar index
From September 14, 2020, the movement of the dollar index #USDX will continue depending on the direction of the range breakdown:
- resistance level of 93.35 at the lower border of ISL38.2 of the equilibrium zone of the Minute operational scale fork;
- support level of 93.00 - the upper border of the channel 1/2 Median Line Minute.
Breakdown of the support level of 93.00 - development of the #USDX movement in the channel 1/2 Median Line Minute (93.00 - 92.55 - 92.10), if the lower limit (92.10) of this channel is broken, it will be possible to update the local minimum 91.72 and reach the control lines - LTL Minor (91.40) and LTL Minute (90.80).
The breakdown of the resistance level of 93.35 on ISL38.2 Minute will determine the development of the movement of the dollar index in the equilibrium zone (93.35 - 93.90 - 94.45) of the Minute operational scale fork with the prospect of reaching the boundaries of the 1/2 Median Line channel (94.70 - 95.60 - 96.60) of the Minor operational scale fork.
Details of the #USDX movement since September 14, 2020 are shown on the animated chart.
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Euro vs US dollar
The single European currency EUR/USD from September 14, 2020 will also develop its movement depending on the direction of the range breakdown :
- resistance level of 1.1890 - the lower border of the channel 1/2 Median Line Minute;
- support level of 1.1830 - the upper border of ISL38.2 of the equilibrium zone of the Minute operational scale fork.
Breakdown of the resistance level of 1.1890 - the continuation of the EUR/USD movement in the 1/2 Median Line channel (1.1890 - 1.1945 - 1.1990) of the Minute operational scale fork with the prospect of updating the local maximum 1.2011 and reaching the levels:
- 1.2055 - UTL control line of the Minor operational scale fork.;
- 1.2075 - initial line of SSL of the Minute operational scale fork;
- 1.2145 - UTL Minute control line.
If the support level of 1.1830 breaks at ISL38.2 Minute, the movement of the single European currency may continue within the boundaries of the equilibrium zone (1.1830 - 1.1770 - 1.1705) of the Minute operational scale fork and channel 1/2 Median Line (1.1720 - 1.1625 - 1.1525) of the Minor operational scale fork.
Options for EUR/USD movement from September 14, 2020 are shown on the animated chart.
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Great Britain pound vs US dollar
The movement of Her Majesty's currency GBP/USD from September 14, 2020 will continue to develop in the equilibrium zone (1.2770 - 1.2905 - 1.3055) of the Minute operational scale fork - details of working out the above levels are shown on the animated chart.
If there is a break of the top border ISL38.2 equilibrium zone of the Minute operational scale fork - resistance level of 1.3055 - then the upward movement of GBP/USD will be continued to the boundaries of the channel 1/2 Median Line Minute (1.3180 - 1.3275 - 1.3365) with the prospect of updating local maximum 1.3482 and reaching the upper limit of ISL61.8 (1.3535) equilibrium zone of the Minor operational scale fork.
Breakdown of the lower border of ISL61.8 of the equilibrium zone of the Minute operational scale fork - support level of 1.2770 - option to continue the downward movement of the currency of Her Majesty to the end line FSL Minute (1.2330) and the local minimum 1.2251.
We look at the options for the movement of GBP/USD from September 14, 2020 on the animated chart.
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US dollar vs Japanese yen
The movement of the currency of the "Land of the Rising Sun" USD/JPY will be determined by the development and direction of the range breakout:
- resistance level of 106.90 - the RL100.0 reaction line of the Minute operational scale fork;
- support level of 106.10 - the upper border of the channel 1/2 Median Line Minute.
Breakdown of the support level of 106.10 - USD/JPY movement will continue in the 1/2 Median Line channel (106.10 - 105.55 - 105.00) of the Minute operational scale fork with the prospect of reaching the boundaries of the channel 1/2 Median Line (104.55 - 103.20 - 101.90) of the Minor operational scale fork.
Breakdown of the reaction line RL100.0 Minute - resistance level of 106.90 - option to continue the development of the upward movement of the currency of the "Land of the Rising Sun" to the borders of the equilibrium zones of the operational scales forks - Minute (107.50 - 108.30 - 109.10) and Minor (107.75 - 109.10 - 110.50).
The #USDX movement markup from September 14, 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 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 start date – March 1973, when the main currencies began to be freely quoted relative to each other.
