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MT5.com - Comprehensive analysis of movement options for #USDX vs EUR/USD, GBP/USD, and USD/JPY (Daily) on May 26, 2020

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Forex Analysis:::2020-05-22

Comprehensive analysis of movement options for #USDX vs EUR/USD, GBP/USD, and USD/JPY (Daily) on May 26, 2020

Minor operational scale (Daily)

What threatens the last week of May and the beginning of summer with the main currency instruments? Development options for the movement #USDX vs EUR/USD, GBP/USD, and USD/JPY (Daily) on May 26, 2020.

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US dollar index

From May 26, 2020, the movement of the dollar index (#USDX) will continue to be determined by working out the boundaries of the 1/2 Median Line channel (101.20-100.20-99.25) of the Minor operational scale - details of movement within this channel are shown on the animated chart.

A breakout of the lower border of the channel 1/2 Median Line Minor - support level of 99.25 - will confirm the further development of the movement of the dollar index in the equilibrium zone (99.50-98.50-97.50) of the Minor operational scale fork with the prospect of achieving the ultimate Shiff Line Minor (96.30).

The breakdown of the upper border of the channel 1/2 Median Line of the Minor operational scale fork - resistance 101.20 - will be important to the continuation of the upward movement #USDX to the starting line SSL (102.60) of the Minor operational scale fork and a maximum of 102.99.

The layout of the #USDX movement options from May 26, 2020 is shown on the animated chart.

analytics5ec7f8a167817.jpg

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Euro vs US dollar

From May 26, 2020, the single European currency EUR/USD will continue to develop the movement depending on the development and direction of breakdown of the channel boundaries 1/2 Median Line (1.0910-1.0885-1.0845) of the Minuette operational scale forks - details are shown in the animated chart.

If the upper limit of the 1/2 Median Line channel is broken, the Minute - resistance level of 1.0910 - the further development of the movement of the single European currency will occur within the borders of the 1/2 Median Line channel (1.0865-1.0960-1.1050) and equilibrium zones (1.1050-1.1150-1.1256) of the Minor operational scale fork.

If the support level of 1.0845 breaks at the lower border of the channel 1/2 Median Line Minute, the downward movement of EUR/USD can be continued to the borders of the equilibrium zone (1.0800-1.0730 - 1.0675) of the Minuette operational scale fork.

Options for EUR/USD movement from May 26, 2020, depending on the processing of the channel 1/2ML Minute are shown on the animated chart.

analytics5ec7f88ce1c0a.jpg

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Great Britain pound vs US dollar

The development of the movement of Her Majesty's currency GBP/USD from May 26, 2020 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.2360-1.2160-1.1930) of the Minor operational scale fork - marking of movement within this equilibrium zone is shown in the animated chart.

When the upper border of the channel is broken 1/2 Median Line Minor - resistance level 1.2360 - the movement of Her Majesty's currency can be continued to the borders of the equilibrium zone (1.2570-1.2870-1.3170) of the Minor operational scale fork.

If there will be a breakdown of the lower border of the channel 1/2 Median Line in the Minor operational scale - support level 1.1930 - then the downward movement of GBP/USD can be continued to the borders of the channel 1/2 Median Line (1.1700-1.1500-1.1270) of the Minuette operational scale fork.

From May 26, 2020, we look at the GBP/USD movement options on the animated chart.

analytics5ec7f86f8e4ff.jpg

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US dollar vs Japanese yen

Range development and breakdown direction:

  • resistance level of 108.20 - the upper limit of the 1/2 medium Line channel of the Minor operational scale forks;
  • support level 107.30 - the control line LTL of the Minuette operational scale forks;
  • and it will determine the development of the movement of the currency of the "Land of the Rising Sun" USD/JPY from May 26, 2020.

Breakdown of the LTL control line of the Minuette operational scale fork -support level 107.30 - an option to continue the development of the downward movement of the currency of the "Land of the Rising Sun" to the goals:

  • local minimum 106.00;
  • warning line LWL38.2 (105.50) of the Minor operational scale pitchfork;
  • control line LTL Minor (104.40).

If the resistance level of 108.20 is broken, the USD/JPY movement will continue in the 1/2 Median Line channel (108.20-109.35-110.55) of the Minor operational scale fork with the prospect of reaching the boundaries of the 1/2 Median Line channel (111.30-112.70-114.10) of the Minuette operational scale fork.

The markup of the USD/JPY movement options from May 26, 2020 is shown on the animated chart.

analytics5ec7f859e17a1.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.

Ratu Taslim
Analyst InstaForex
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