The EUR/USD dropped and erased the minor morning gains, is trading in the red and could resume the Friday’s bearish candle. We’ll see what will happen because this could be only a minor decrease so the rate to test and retest a broken dynamic resistance, we may have a buying opportunity in the upcoming days if the support will hold (resistance has turned into support).

Technically, we could still have a Rising Wedge pattern, but we’ll have to wait to see if will be confirmed, a valid breakdown from this pattern will open the door for more declines, but is premature to say what will happen.

The Euro decreased only against the greenback today, the Euro-zone Sentix Investor Confidence decreased from 28.4 to 28.3 points and has come in better versus the 28.1 estimate, while the German Trade Balance has come in line with expectations, the trade surplus was reported at 20.3B in May, much higher versus the 19.7B in the previous reading period. Remains to see how will react later after the US data will be released, the fundamental reports could bring some action on the currency market.

You can see that I’ve drawn a Rising Wedge pattern because the rate has shown some exhaustion signs, right now is pressuring the fifth warning line (WL5) of the former descending pitchfork, could decrease along with this line till will reach the downside line of the chart pattern.

Could decrease after the false breakout above the median line (ml) of the ascending pitchfork, you can see that has come back to retest this level in the previous week, but failed to touch this dynamic resistance. Is premature to say that we’ll have another leg lower in the upcoming period, but a retreat could come because right now is located inside a major resistance zone.

A drop below the WL5 and outside the Rising Wedge pattern will confirm a drop at least to the lower median line (lml) of the ascending pitchfork, the next downside targets will be at the 150% Fibonacci line and lower at the first warning line (wl1).