Comprehensive analysis of movement options for #USDX vs EUR/USD, GBP/USD, and USD/JPY (H4) on May 18, 2020

By | May 16, 2020
InstaForex
Comprehensive analysis of movement options for #USDX vs EUR/USD, GBP/USD, and USD/JPY (H4) on May 18, 2020

Minuette operational scale (H4)

The second half of May – what will happen to the dollar index and the main currency instruments? Options for the development of the movement for #USDX vs EUR/USD, GBP/USD, and USD/JPY (H4) on May 18, 2020.

____________________

US dollar index

The development of the movement of the dollar index (#USDX) from May 18, 2020 will be due to the development and direction of the breakdown of the range:

  • resistance level 100.56 – control line UTL of the Minuette operational scale forks;
  • support level 100.30 – the initial line of SSL of the Minuette operational scale forks.

The return of the dollar index below the initial line SSL of the Minuette operational scale forks – breakdown of the support level 100.30 – the option of developing the downward movement #USDX to the borders of the channel 1/2 Median Line (99.70-99.45-99.15) and equilibrium zone (99.15-98.75-98.30) of the Minuette operational scale forks.

The breakdown of the UTL control line of the Minuette operational scale forks – the resistance level of 100.56 will make it possible to continue the development of the upward movement #USDX to the goals:

  • local maximum 100.87;
  • UWL38.2 (101.90) warning line of the Minuette operational scale forks;
  • final Shiff Line Minute (102.00).

Details of the dollar index movement markup from May 18, 2020 are shown in the animated chart.

analytics5ebeb7b51b12d.jpg

____________________

Euro vs US dollar

The development of the movement of the single European currency (EUR/USD) from May 18, 2020 will continue in the channel 1/2 Median Line (1.0865-1.0767-1.0680) of the Minuette operational scale forks taking into account the direction of the breakdown of the range:

  • resistance level 1.0810 – warning line LWL100. 0 of the Minuette operational scale forks;
  • support level 1.0790 – reference line LTL of the Minuette operational scale forks.

Details of the movement of EUR/USD in the channel 1/2 Median Line Minute are shown on the animated chart.

If the warning line LTL100.0 breaks through the Minuette operational scale forks – resistance level 1.0810 – the development of the movement of the single European currency will be directed to the goals:

  • upper limit of the channel 1/2 Median Line Minute (1.0865);
  • channel 1/2 Median Line (1.0900 – 1.0930 – 1.0960) of the Minuette operational scale forks;
  • with the prospect of reaching the local maximum 1.1018 and the lower limit of ISL38.2 (1.1050) of the balance zone of the Minuette operational scale forks.

If the support level of 1.0790 is consistently broken on the control line of the LTL of the Minuette operational scale forks and 1/2 Median Line Minute (1.0767), the downward movement of EUR/USD can be continued to the goals:

  • local minimum 1.0727;
  • lower border of the channel 1/2 Median Line Minute (1.0680);
  • with the ability to update the minimum 1.0636 and achieve the single European currency warning line LWL161.8 (1.0500) of the Minuette operational scale forks.

Details of the EUR/USD movement options from May 18, 2020 are shown on the animated chart.

analytics5ebeb7ce91c57.jpg

____________________

Great Britain pound vs US dollar

The further development of Her Majesty’s currency movement GBP/USD from May 18, 2020 will be determined by the development and direction of the breakdown of the boundaries of the equilibrium zone (1.2170-1.2090-1.2020) of the Minuette operational scale forks – detailing the movements within this zone of balance is shown in the animation chart.

The return of Her Majesty’s currency above the upper limit of the ISL38.2 equilibrium zone of the Minuette operational scale forks – resistance level 1.2170 – an option for the development of the upward movement of this currency instrument to the goals:

  • final Shiff Line Minuette (1.2240);
  • starting line SSL Minuette (1.2360);
  • 1/2 Median Line Minuette channel (1.2390-1.2440-1.2485).

When breaking the lower border ISL61.8 equilibrium zone of the Minuette operational scale fork – support level 1.2020 – will be the actual continuation of the downward movement of GBP/USD to the borders of the channel 1/2 Median Line (1.1840-1.1640-1.1435) of the Minuette operational scale fork.

Details of the movement of GBP/USD since May 18, 2020 can be seen on the animated chart.

analytics5ebeb7ec9f525.jpg

____________________

US dollar vs Japanese yen

Starting April 30, 2020, the movement of the currency of the “Land of the Rising Sun” USD/JPY will also be determined by mining and the direction of the breakdown of the boundaries of the equilibrium zone (106.95-107.20-107.50) of the Minuette operational scale fork – for details of movement inside the specified zone, see the animated chart.

When sharing the breakdown of the support level of 106.95 on the lower border ISL38.2 equilibrium zone of the Minuette operational scale fork and the line of control LTL (106.80) of the Minuette operational scale fork will be a possible continuation of the downward movement of USD/JPY to the channel borders 1/2 Median Line Minuette (106.35-106.20-106.05) with the prospect of achieving precautionary – LWL38.2 (105.65) and control LTL (105.55) lines of the Minuette operational scale fork.

And if there is a break of the top border ISL61.8 equilibrium zone of the Minuette operational scale fork – resistance level of 107.50 – then the development of the upward movement the USD/JPY may continue to order:

  • local maximum 107.78.
  • SSL start line (108.15) of the Minuette operational scale fork;
  • ultimate line FSL Minuette 108.35.

For the details of the USD/JPY movement since May 18, 2020, look at the animated chart.

analytics5ebeb80719d16.jpg

____________________

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 – 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 starting date – March 1973 when the main currencies began to be freely quoted relative to each other.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

InstaForex