The Euro has been depreciating against the Swedish Krona since the beginning of October when the EUR/SEK exchange rate reversed south from the upper boundary of the rising wedge pattern (1D time-frame chart).
As apparent on the chart, the currency pair is testing the support level formed by the monthly PP at 10.73. Given that the pair is pressured by the 55-, 100– and 200-hour SMAs, it is likely that some downside potential could prevail in the market in the short run. A possible downside target is the lower pattern line, located circa 10.64/10.65.
If the given pattern holds, the general direction is expected to be north. However, if the wedge does not hold, the currency pair could decline to the psychological level at 10.50.