The common European currency recently reached the upper trend line of a junior descending pattern against the Swedish Krona. Due to that reason the pair can be considered at a significant crossroads for short term traders.
If the pair passes the resistance, which is a lone one, it would surge first to the 100-hour SMA at the 9.50 mark and later on to the resistance cluster located from the 9.5110 mark to the 9.5165 level.
On the other hand the rate might fall and search for support in the 55-hour SMA at the 9.4825 level. In addition, if the 55-hour SMA continues to decline, it will be strengthened by the weekly S1 at the 9.4796 level.
If the pair passes the resistance, which is a lone one, it would surge first to the 100-hour SMA at the 9.50 mark and later on to the resistance cluster located from the 9.5110 mark to the 9.5165 level.
On the other hand the rate might fall and search for support in the 55-hour SMA at the 9.4825 level. In addition, if the 55-hour SMA continues to decline, it will be strengthened by the weekly S1 at the 9.4796 level.
EUR/SEK was trading in a medium-term ascending channel in force since mid-August. After reaching the 9.66 mark, the Euro began to move southwards, thus forming a narrow falling wedge. The senior patter was breached on Wednesday when bears continued to pressure the rate lower.
Currently, three factors point to a possible appreciation within the remaining trading week. First, the rate should make a retracement from the lower channel boundary circa 9.56.
Second, this falling wedge is a minor correction against the dominant bullish trend; thus, the rate should break out from this pattern to the upside.
Finally, technical indicators also point to a possible recovery, demonstrating that the upside momentum might even go beyond the lower channel line.
The Euro faces several significant resistances, namely, the 55-, 100– and 200-hour SMAS, the weekly S1 and the monthly PP in the 9.5492/9.600 area. One of these lines are likely to provide an unbreakable resistance.