EUR/USD: Hourly downcyle in play within daily range context

The breakout of the former hourly range last week validated the creation of a new cycle down in the hourly, reaching the first 100% fib proj target 1.1452 ahead of a key daily support circa 1.1440.

Fresh strong demand off the daily support has confirmed the establishment of a daily range between 1.1620-1.1440.

As long as the structure of lower lows and lower highs remains in place as per our market structure criteria (can be visited in our medium page), the red box highlighted presents an interesting risk-reward proposition.

Sell limit orders at the 50% fib retracement of the last hourly downcycle are capping the upside, with the intersection coinciding with the former hourly support-turned-resistance.