Daily Forex Update: EUR/USD

The EUR/USD has been moving in a sideways direction across the 60-minute timeframe within a range indentified by Autochartist’s five-bar Initial Trend reading as a distribution cycle. This sets up exhaustion entries at the top and bottom lines of the Triangle pattern that has formed on this timeframe. Distribution cycles are characterized by volatile, sideways trading, and often lead to "whipsaws" that occur when traders mistake distribution for a quiet version of a sideways-moving cycle. In other words, whipsaws are momentum trade entries that quickly retreat into the pattern’s range because there is simply not enough momentum, nor organized sentiment, for sustained follow-through.