Operational scale Minute (timeframe h4 )
Are we flying in ranges? Overview of driving options #USDX vs EUR/USD from May 4, 2021
Previous Review EUR/USD & GBP/USD & USD/JPY и US Dollar Index in timeframe h4 from 19:34 2021-04-28 UTC + 4
US Dollar Index
From May 04, 2021, the movement of the dollar index – #USDX – h4 will proceed in accordance with the development and direction of the range breakout:
- resistance level 91.05 at the lower boundary of ISL61.8 of the balance zone of the pitchfork of the Minute operating scale;
- support level 90.50 on the SSL starting line of the Minuette operating scale pitchfork.
With sequential breakdown support level 90.50 on the SSL Minuette start line, local minimum 90.36 and control line LTL Minuette (90.30), downward movement #USDX can be continued to goals:
— minimum 89.65;
– FSL end line (89.55) pitchfork of operational scale Minute;
– warning line LWL38.2 Minute (88.85).
Breakdown ISL61.8 Minute — resistance level 91.05 — resumption of development of the movement dollar index in the equilibrium zone (91.05 — 91.50 — 91.91) pitchfork of operational scale Minute with the possibility of achieving the boundaries of the equilibrium zone (91.91 — 92.35 — 92.80) pitchfork of operational scale Minuette.
Euro vs US Dollar
Single European currency – EUR/USD — h4 – from May 04, 2021 also will develop its movement depending on the development and direction of the range breakout:
- resistance level 1.2150 — local maximum;
- support level 1.2070 at the upper boundary of ISL61.8 of the balance zone of the pitchfork of the Minute operating scale.
When updating local maximum 1.2150 followed by breakdown control line UTL (1.2165) Minuette operational scale pitchfork will become relevant continued development of the upward movement EUR/USD to the goals:
— maximum 1.2243;
– FSL end line (1.2280) pitchfork of operational scale Minute.
When the support level is broken 1.2070 – ISL61.8 Minute – movement single European currency will again begin to flow in the equilibrium zone (1.2070 — 1.2005 — 1.1940) pitchfork of operational scale Minute with the prospect of continuation of this movement already within the boundaries of the equilibrium zone (1.1955 — 1.1895 — 1.1835) pitchfork of operational scale Minuette.
Review compiled excluding the news background, 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 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 converts the index value to 100 as of the date
the countdown began in March 1973, when the main currencies began to freely
quoted relative to each other.