EUR/SEK 4H Chart: Channel Down

The Euro has benefited from a recent heavy market turmoil, also at the expense of the Swedish Krona. Since December-end the EUR/SEK cross added around 1.75%, by growing from 9.12 to above 9.28 by Thursday afternoon. It succeeded in violating important resistances, including 100 and 200-period SMAs and monthly PP. The closest major supply zone is already represented by the pattern's upper edge around 9.34, which is reinforced by monthly R1 and weekly R3. After such a climb, technical indicators foresee a bearish correction. In the meantime, the bulls will be supported by a huge oversold status of the pair (73% short), as it paves the way for the new bullish traders to enter the market.