EUR/SEK 4H Chart: Channel Down

After topping out at 9.10 EUR/SEK started to trade in a down-trend and still seems to preserve the bearish momentum. However, the currency pair failed on several occasions to push through 8.75, thereby calling into question the ability of the Swedish Krona to continue outperforming the single European currency. Right now the exchange rate is probing the resistance between 8.87 and 8.85, created by the down-trend resistance line, weekly R1 and the 200-period SMA. If this supply area gives in, the outlook will be changed from bearish to bullish. Alternatively, in case of a strong sell-off, the dip could extend towards 0.87 before EUR/SEK consolidates.