EUR/SEK 4H Chart: Channel Down

For a long time before Dec 13 EUR/SEK has been persistently moving north, but the following days were associated with poor performance of the Euro. Moreover, it appears that the sell-off will persist. The first argument in favour of the decline is the current location of the currency pair—it is trading just below the down-trend resistance line, which in turn is likely to send the rate to 8.7311. Secondly, technical studies on the four-hour and daily charts are pointing down. Finally, a bearish scenario is shared by a majority of the SWFX market participants—71% of them are holding short positions. Still, we should be wary of a potentially tough support at 8.5465—it may prevent an extension of the dip.