EUR/SEK 4H Chart: Broadening Falling Wedge

After touching the lower boundary of the broadening falling wedge pattern four days ago, the pair is currently trying to gain bullish momentum in order to commence a recovery.

At the same time, we tend to stay rather pessimistic on perspectives of EUR/SEK cross. Firstly, there is a dense supply area just above the spot price, located around 9.22 (monthly S1; weekly PP). Moreover, technical indicators on all time-frames are pointing downwards, while 71.68% of SWFX market participants are holding short opened positions on the pair. Therefore, the Euro may fail to rebound and is likely to be sent further to the south by mentioned resistances.