EUR/SEK 4H Chart: Falling Wedge

Even though technical indicators on all time frames are mixed and the majority (56%) of traders are holding short open positions at the moment, the upcoming testing of the monthly pivot point at 9.4062 is assumed to be successful. We expect this event to be supported by a recent penetration of the 200-period SMA and other important resistances around 9.34. However, as soon as EUR/SEK reaches the 9.44 level, it will meet the pattern's upper edge and weekly R1. Downward tendency is estimated to resume there, and bears will try to regain technical levels it lost in the past week. Meanwhile, a jump above 9.44 should activate purchases up to the Sep 28 high at 9.5319.