EUR/SEK 1H Chart: Channel Down

EUR/SEK topped out at 8.7983 on Aug 4. There it commenced a decline that still remains topical, being that the major down-move and bullish corrections accompanying it turned out to be forming a bearish channel.

Just recently the currency pair breached the 200-hour SMA and touched upon the lower boundary of the pattern, meaning we may expect a shallow rally in the short run, even though the general outlook on the 17-nation currency should stay bearish. Technical indicators, on the other hand, are not supporting the price action implied by the pattern, they are mostly in favour of a reversal.