EUR/USD is closing on levels where traders should sell nL1N2D209S.
The pair has traded in a series of gradually declining ranges for two years, falling towards 1.0700-1.1000 during the coronavirus crisis.
The 100-/200-DMAs at 1.0969/1.1015, 21-WMA at 1.0971 and daily Ichimoku cloud at 1.0941-1.1065 define resistance.
Further resistance is defined by 55-WMA 1.1070, weekly Ichimoku cloud 1.1088-1.1225 and 100-WMA 1.1234.
Should the current range break, EUR/USD may well be capped near the peak of the prior 1.09-1.12 range -- a potentially small reward for the many traders currently long IMM/FX.
The current strength was triggered by Franco-German plans for a recovery fund.
The euro has rallied on that news, although the dollar was sold on the notion it would be devalued by U.S. stimulus.
Euro zone stimulus will surely do the same, undermining the euro.
Logically, the euro should be sold to buy riskier assets during the recovery phase traders now envisage.
There may be little to choose between euro and dollar, but traders should respect the EUR/USD trend.