EUR/SEK 4H Chart: Channel Down

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Being unable to cross the resistance at 9.1393 on Apr 21, subsequently EUR/SEK came under strong selling pressure, resulting in emergence of a bearish channel. Accordingly, the currency pair is expected to respect the upper down-trend line, which creates a strong supply area with the May 19 high and 200-period SMA at 9.0603. If this is the case, then the Euro will be in a good position to target the lower down-trend line at 8.9538. This support level is reinforced by the May 15 low and weekly S1, meaning we should expect an upward correction once it is approached. Meanwhile, the sentiment towards the pair is notably bearish—72% of open positions are short.
© Dukascopy Bank SA
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