EUR/SEK 4H Chart: Channel Down

A successful correction is taking place in the four-hour chart for the Euro/Krona currency pair. Last week it bounced off the pattern's upper boundary around 9.38 and since then it has already lost around 14 figures. EUR/SEK managed to overcome several important demands including the monthly pivot point and 200-period SMA. On the bearish side, weekly technical indicators are giving signals to sell the Euro. Moreover, EUR/SEK seems to be overbought in the SWFX market, as 71% of all open positions are long right now. On the other hand, daily studies are bullish and the 55-period SMA has just crossed the 200-period moving average to the north, thus supporting a recovery in the medium-term.