The EUR/USD remained strong on Frid

The EUR/USD remained strong on Friday and did finish the week near the highs. (“The EUR/USD is surpassing this morning the key 1.3900 level and there is currently no sign of exhaustion of the rally. The stochastic and other indicator shows an overbought situation, but this does not necessarily mean that the EUR/USD will reverse here. The sentiment is super bullish after Greece was able to successfully return to the bond market yesterday. The single currency could remain strong going into the weekend as there is just some inflation data from the US this afternoon.”)

This morning we see EUR/USD starting with a gap down after Mario Draghi`s comments over the weekend. We stated the overbought situation on Friday morning and are not surprised to see this happen. We are short term negative for the EUR/USD towards 1.3820 at least. Before that move starts we could see a recovery and a gap closing towards 1.3880. Any recovery towards 1.3880 which stays below 1.39 is a short term selling opportunity in the pair. Target 1.3820, potentially lower.