Let me bring to your attention a comprehensive analysis of the movement options #USDX, EUR / USD, GBP / USD and USD / JPY (the share of these instruments in the calculation of the dollar index is 83.1%) during the second half of September 2019.
Minor (Daily time frame)
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US dollar Index
In the second half of September 2019, the development of the movement of the dollar index #USDX will continue to be determined by working out and the direction of breakdown of the boundaries of the 1/2 Median Line channel (98.80 - 98.05 - 97.75) Minuette operational scale fork. We look in the animated chart for the movement details inside this channel.
In case of breakdown of the lower boundary of the 1/2 Median Line Minuette channel (support level of 97.75), the development of the movement of the dollar index will continue to the boundaries of the equilibrium zone (97.55 - 97.00 - 96.50) of the Minuette operational scale fork.
On the other hand, if the breakdown of the upper boundary of the 1/2 Median Line channel (resistance level of 98.40) of the Minuette operational scale fork takes place, then the upward movement #USD will be directed to the targets - control line UTL (99.00) of the Minor operational scale fork - the initial SSL Minuette line (99.20) -maximum 99.36- control line UTL Minuette (99.55) - warning line UWL38.2 Minuette (99.95).
The markup of #USDX motion options on September 16, 2019 is shown in the animated chart.
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Euro vs US dollar
The development of the movement of the single European currency EUR / USD on September 2019 will also be determined by working out the boundaries of the 1/2 Median Line channel (1.1125 - 1.1085 - 1.1040) of the Minuette operational scale fork. The movement details inside this zone are shown in the animated chart.
The breakdown of the upper boundary of the 1/2 Median Line Minuette channel (resistance level of 1.1125) will make it relevant to continue the development of the upward movement of EUR / USD to the equilibrium zone (1.1160 - 1.1215 - 1.1280) of the Minuette operational scale fork.
If EUR / USD will break through the lower boundary of the 1/2 Median Line channel (support level of 1.1040) of the Minuette operational scale fork, then the downward movement can be continued to the targets - SSL Minuette start line (1.0940) - local minimum 1.0925 - LTL Minuette control line (1.0895) - the lower limit of ISL61.8 (1.0875) of the equilibrium zone of the Minor operational scale fork.
The details of the EUR / USD movement options from September 16, 2019 are shown in the animated chart.
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Great Britain pound vs US dollar
Meanwhile, the development of Her Majesty's GBP / USD currency movement on September 2019 will be determined by the direction of the breakdown of the range :
- resistance level of 1.2580 (1/2 Median Line of the Minuette operational scale fork);
- support level of 1.2485 (1/2 Median Line of the Minor operational scale fork).
The breakdown of the 1/2 Median Line of the Minuette operational scale fork (resistance level of 1.2580) together with the breakdown of the upper boundary of the 1/2 Median Line Minor channel (1.2610) will determine the development of Her Majesty's currency movement to the boundaries of the equilibrium zone (1.2665 - 1.2854 - 1.3045) Minor operating scale fork.
In case of breakdown of the support level of 1.2485 by 1/2 Median Line Minor, the GBP / USD movement will be directed to the targets - the lower boundary of ISL38.2 (1.2430) of the equilibrium zone of the Minuette operational scale fork - 1/2 Median Line Minuette channel (1.2330 - 1.2245 - 1.2156) with the prospect of reaching the initial SSL line (1.2075) of the Minor operational scale forks.
The details of the GBP / USD movement from September 16, 2019 can be seen on the animated chart.
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US dollar vs Japanese yen
The development of the USD / JPY currency movement of the "country of the rising sun" in the second half of September 2019 will depend on the development and direction of the breakdown of the boundaries of 1/2 Median Line channel (109.15 - 108.20 - 107.30) Minuette operational scale fork. The movements details inside this channel are presented on the animated chart.
The breakdown of the support level of 107.30 on the lower boundary of the 1/2 Median Line channel of the Minuette operational scale fork will make the development of the downward movement of the currency of the country of the rising sun to the goals - the LTL control line (105.65) of the Minor operational scale fork - warning line LWL100.0 Minor (105.25) - initial SSL Minuette line (104.95) with the prospect of updating the local minimum 104.47.
In the event of a breakdown of the upper boundary of the 1/2 channel, the Median Line Minuette (resistance level of 109.15) will confirm the development of the USD / JPY movement in the equilibrium zone (108.80 - 110.10 - 111.40) of the Minuette operational scale fork.
We look at the animated chart for the details of the USD / JPY movement on September 16, 2019.
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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.
