EUR/USD Forecast: Euro looks to stay bullish while 1.1650-1.1660 holds.

EUR/USD holds steady above 1.1650 following Wednesday’s rally.
Technical buyers could remain interested in Euro while 1.1650-1.1660 support holds.
The US economic calendar will feature weekly Jobless Claims data.

Following the sideways action seen earlier in the week, EUR/USD gathered bullish momentum and registered strong daily gains on Wednesday. After touching its highest level since July 28 near 1.1700, the pair seems to have entered a consolidation phase above 1.1650 in the European session on Thursday.

Renewed concerns over a downturn in the US economy caused the US Dollar (USD) to weaken against its rivals as US President Donald Trump announced new tariffs and delivered threats.

Trump issued an executive order imposing an additional 25% tariff on Indian imports on Wednesday, citing India’s direct or indirect imports of Russian oil, and added that he could impose an extra 25% tariff on Chinese goods over China’s purchases of Russian oil. Moreover, he said that they are planning to impose a 100% tariff on semiconductors and chips that are not being manufactured in the US.

The US Department of Labor will release the weekly Initial Jobless Claims data on Thursday. Markets expect the number of first-time applications for unemployment benefits to rise to 221,000 from 218,000 in the previous week. A reading below 210,000 could support the USD with the immediate reaction and cause EUR/USD to correct lower. On the other hand, a noticeable increase, with a print above 230,000, could have the opposite impact on the pair’s action.

Meanwhile, market participants will continue to pay close attention to trade-related news. A further escalation of the US-China tensions could make it difficult for the USD to attract buyers.

EUR/USD Technical Analysis

The Relative Strength Index (RSI) indicator on the 4-hour chart retreated below 70, suggesting that the current pullback is a technical correction.

The 200-period Simple Moving Average (SMA) and the Fibonacci 23.6% retracement of the latest uptrend form a strong support area at 1.1650-1.1660. In case EUR/USD fails to stabilize above this region, technical buyers could hesitate. In this scenario, 1.1620 (100-period SMA) could be seen as the next support before 1.1540-1.1550 (Fibonacci 38.2% retracement, 50-period SMA) and 1.1500 (static level, round level).

On the upside, 1.1700 (static level, round level) could be seen as the immediate resistance level before 1.1760 (static level) and 1.1800 (static level, round level).