EUR/SEK 4H Chart: Descending Triangle

The common European currency is trading against the Swedish Krone simultaneously in three different patterns. Two of them are long-term and medium-term ascending channels, but the third represents a descending triangle. Formation of the junior pattern completely finished only yesterday, when the currency rate bounced off from the upper descending trend line for the second time. From a technical perspective, a breakout is expected to occur downwards, which would lead to termination of the medium-term channel. In such scenario, the pair should not be constrained by the combined support formed by the weekly PP at 9.7615 and the 55- and 100-period SMAs at 9.7611. Nevertheless, there is also possibility that the rate could be pushed upwards in the direction of weekly R1 at 9.8004 in accordance with the general trend line.