During September, the Euro has weakened broadly. Economists at Nordea analyze EUR/USD outlook.
Downward momentum in EUR/USD unlikely to last
From a technical perspective, a 14-day Relative Strength Index (RSI) below 30 points to a USD that is overbought against the EUR, which means that further downside should be limited.
While the USD could continue to do well in the very short term, we still are inclined to think that the USD fortunes will reverse next year as it is unlikely that the US economic outperformance will last.
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