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Operational Scale Minute (h4 timeframe)
Major currencies continue to dominate the US Dollar? Overview of options for the movement of EUR / USD & GBP / USD in the h4 timeframe from October 21, 2020.
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Euro vs US Dollar
The development of the movement of the single European currency EUR / USD from October 21, 2020 will be determined by the development and direction of the breakdown of the equilibrium zone boundaries (1.1855 - 1.1835 - 1.1815) pitchfork of Operational Scale Minuette.
Breakdown of the lower boundary of the ISL38.2 equilibrium zone Minuette - support level 1.1815 - the continuation of the development of the movement of EUR / USD already in the 1/2 Median Line Minuette channel (1.1815 - 1.1795 - 1.1775), and if a breakdown of the lower boundary (1.1775) of this channel occurs, then the downward movement of this instrument will be directed to the following targets:
The breakdown of the resistance level 1.1855 at the upper border of ISL61.8 of the equilibrium zone of the pitchfork of the Operational Scale of Minuette will make the continuation of the development of the upward movement of the single European currency to the final Shiff Line Minuette (1.1875) and the boundaries of the channel 1/2 Median Line (1.1925 - 1.1990 - 1.2055) of the pitchfork Operational Scale Minute.
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Great Britain Pound vs US Dollar
The development of the movement of Her Majesty's currency GBP / USD from October 21, 2020 will also proceed depending on the development and the direction of the breakdown of the equilibrium zone boundaries (1.3110 - 1.3075 - 1.3055) of the Pitchfork equilibrium zone of the Operational Scale Minuette.
The breakdown of the support level 1.3035 at the lower border of ISL38.2 of the equilibrium zone of the pitchfork of the Minuette Operational Scale will direct the downward movement of GBP / USD to the targets:
The breakdown of the resistance level 1.3110 at the upper border of ISL61.8 of the equilibrium zone of the Minuette Operational Scale will make it relevant to continue the development of the upward movement of Her Majesty's currency to the borders of the 1/2 Median Line channel (1.3170 - 1.3280 - 1.3390) of the Minute Operational Scale.
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The review is made without taking into account the news background, opening of trading sessions of major financial centers and is not a guide to action (placing "sell" or "buy" orders).
The formula for calculating the dollar index is:
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 brings the value of the index to 100 as of the start date of March 1973, when the major currencies began to be freely quoted relative to each other.
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