12.08.202015:06 Forex Analysis & Reviews: Comprehensive analysis of movement options for EUR/USD & GBP/USD (H4) on August 12, 2020

Minute operational scale (H4)

Continuation of the downward movement? Options for the development of the movement of EUR/USD & GBP/USD (H4) on August 12, 2020.

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Euro vs US dollar

The development of the movement of the single European currency EUR/USD from August 12, 2020 will be determined by the development and direction of the breakdown of the range:

• resistance level of 1.1790 - the lower border of the channel 1/2 Median Line of the Minute operational scale fork;
• support level of 1.1735 - the upper border of ISL38.2 equilibrium zone of the Minute operational scale fork.

In the event of a breakout of ISL38.2 Minute - support level of 1.1735 - the development of the EUR/USD movement will occur within the equilibrium zone (1.1735 - 1.1666 - 1.1600) of the Minute operational scale fork with the prospect of reaching the reaction line RL161.8 Minute (1.1456).

If the resistance level of 1.1790 will make urgent the development of a single European currency within the boundaries of the channel 1/2 Median Line (1.1790 - 1.1815 - 1.1845) and equilibrium zone (1.1845 - 1.1885 - 1.1925) of the Minuette operational scale fork with the ability to achieve the single European currency control line UTL (1.1960) of the Minute operational scale fork.

The EUR/USD movement options from August 12, 2020 are shown on an animated chart.

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Great Britain pound vs US dollar

The movement of the currency of Her Majesty's GBP/USD since August 12, 2020 will also be determined by testing and the direction of the breakout of the range:

• resistance level of 1.3075 - the upper boundary ISL38.2 equilibrium zone of the Minuette operational scale fork;
• support level of 1.3030 - the ultimate Shiff Line of the Minuette operational scale fork.

If the support level of 1.3030 on the ultimate Shiff Line Minuette followed by a breakdown of the median line Median Line Minuette (1.3015) will determine the development of the movement of GBP/USD to targets:

• lower bound of ISL61.8 (1.2965) equilibrium zone of the Minuette operational scale fork;
• ultimate line FSL Minuette (1.2875);
• upper limit of the channel 1/2 Median Line (1.2835) of the Minute operational scale fork.

A breakdown of the resistance level of 1.3075 at the upper border of the ISL38.2 channel equilibrium zone of the Minuette operational scale fork will make it possible to develop an upward movement of her Majesty's currency, which will be directed towards the goals:

• local maximum 1.3131;
• lower bound of ISL38.2 (1.3170) equilibrium zone of the Minute operational scale fork;
• maximum 1.3185;
• with the prospect of reaching the initial SSL line (1.3260) of the Minuette operational scale fork and the Median Line Minute (1.3280).

We look at the options for the movement of GBP/USD from August 12, 2020 on the animated chart.

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The review is prepared without considering the news background, the opening of the trading sessions of the major financial centers and is not a guide to action (issuing orders "sell" or "buy").

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.