Comprehensive analysis of movement options for #USDX vs Gold and Silver (H4) on May 20, 2020

By | May 19, 2020
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Comprehensive analysis of movement options for #USDX vs Gold and Silver (H4) on May 20, 2020

Minuette operational scale (H4)

Options for the battle of the dollar index for the metal in the third week of May – the development of the movement of #USDX vs Gold and Silver from May 20, 2020.

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US dollar index

From May 20, 2020, the movement of the dollar index (#USDX) will be determined by the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (99.65-99.40-99.15) of the Minuette operational scale – see the animated chart for details.

Breakdown of the upper border of the channel 1/2 Median Line Minuette – resistance level of 99.65 – resumption of the development of the upward movement #USDX to the goals:

  • initial SSL line (100.15) of the Minuette operational scale fork;
  • local maximum 100.56-100.87.

If the support level of 99.15 breaks at the lower border of the channel 1/2 Median Line Minuette, the downward movement of the dollar index can be continued to the equilibrium zone (98.90-98.50-98.10) of the Minuette operational scale fork.

The layout of the #USDX movement options from May 20, 2020 is shown on the animated chart.

analytics5ec4007f9a3f0.jpg

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Spot Silver

The development of the Spot Silver movement from May 20, 2020 will be determined by the development and direction of the breakdown of the range:

  • resistance level of 17.250 – reaction line RL23.6 of the Minuette operational scale forks;
  • support level of 16.970 – the upper limit of the 1/2 medium line channel of the Minuette operational scale fork.

If there is a breakdown of the support level of 16.970, then the development of the Spot Silver movement can be continued within the boundaries of the 1/2 Median Line channel (16.970-16.800-16.610) and equilibrium zones (16.500-16.170-15.850) of the Minuette operational scale fork.

If the reaction line rl23.6 of the Minuette operational scale forks is broken – the resistance level of 17.250 – it will be possible to continue the development of the upward movement of Spot Silver towards the goals:

  • initial SSL line (17.525) of the Minuette operational scale fork;
  • FSL end line (17.730) of the Minuette operational scale fork;
  • with the prospect of reaching the warning line UWL38.2 Minute (19.050).

Details of the Spot Silver movement options from May 20, 2020 are shown in the animated chart.

analytics5ec4005e5aa56.jpg

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Spot Gold

The development of the Spot Gold movement will continue from May 20, 2020 depending on the development and direction of the breakdown of the 1/2 Median Line channel (1737.00-1727.00-1718.00) of the Minuette operational scale fork – details of working out the boundaries of this channel are shown on the animated graph.

The breakdown of the support level of 1718.00 at the lower border of the channel 1/2 Median Line Minuette will make it relevant to continue the development of the Spot Gold movement in the equilibrium zone (1718.00-1704.00-1690.00) of the Minuette operational scale fork with the prospect of reaching the upper limit of ISL61.8 (1685.00) of the balance zone of the Minuette operational scale fork.

If the resistance level of 1737.00 is broken at the upper border of the channel 1/2 Median Line of the Minuette operational scale fork, it will be possible to resume the development of the upward movement of Spot Gold to the goals:

  • initial SSL line (1762.00) of the Minuette operational scale fork;
  • control line UTL Minuette (1767.00);
  • final FSL line (1784.00) of the Minuette operational scale fork.

Details of the Spot Gold movement from May 20, 2020 can be seen on the animated chart.

analytics5ec40041c87fd.jpg

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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 – 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.

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