Daily Forex Update: EUR/USD

The EUR/USD has continued its intraday ascent as both the daily and the 240-minute charts have trended higher. However, the short-term 15-, 30-, and 60-minute timeframes reflect a near-term correction caused by strength in the U.S. Dollar prior to a dovish Federal Reserve statement.

The early strength in the Dollar sent the EUR/USD lower through support of a Channel Up pattern. This occurred within a distribution market cycle, which led to exhaustion as seen by the fact that prices were not able to follow-through lower in any substantial way. (Distribution is characterized by a wide range and high volatility; the four-bar Autochartist Initial Trend reading confirmed this market cycle.)