EUR/SEK 4H Chart: Channel Down

CAD/JPY 4H Chart: Channel Up

Comment: CAD/JPY is currently attempting to establish a bullish channel. However, while there is some upside potential, the currency pair is approaching a major falling resistance line, which is highly unlikely to let the Canadian Dollar to appreciate beyond 87.50 yen. At the same time, the February high and the monthly R1 at 87 yen represent a neck-line of the double bottom emerging in the daily chart, and a close above this level will imply a recovery towards the October 2015 high at 93.30. Still, as long as the nine-month down-trend is intact, the outlook will remain bearish. In the meantime, the SWFX traders are unable to reach a consensus, being that 47% of them are holding long positions and 53% are short the pair.

EUR/SEK 4H Chart: Channel Down

Comment: Provided that EUR/SEK keeps trading within the boundaries of the channel, the latest rebound from 9.2050 should be capped by the bearish trend-line at 9.3314. There the currency pair should set the course towards 9.1230, namely the lowest level since December 2015, followed by the 2015 low and monthly S2 at 9.06/9.05. Alternatively, should the bulls retain control of the market and push the price through the upper boundary of the channel, the outlook will nevertheless stay negative. The reason is a cluster of resistances between 9.40 and 9.3670 kronor, created by the March 10 high, monthly PP and 200-period SMA. The market sentiment is also in favour of a sell-off, being that the Euro is overbought—70% of open positions are long.

•  Download Full Trade Pattern Ideas