EUR/USD pared some of its gains after strong US data. It hit an intraday high of 1.16870 and is currently trading around 1.16634. Overall trend remains bullish as long as support 1.1575 holds.
The U.S. published its preliminary Q2 2025 GDP data and initial jobless claims on August 28, 2025, indicating strong economic momentum. Driven by an unexpected 3.3% annualized Q2 GDP growth correction upward by the Bureau of Economic Analysis, which exceeds 3.0% expected and recovers sharply from Q1's -0.5% contraction. Despite a drop in fixed investment, consumer expenditure increased by 1.4 percent, imports fell by 30.3 percent, and government spending rose by 0.4 percent. plus a 1.8% decrease in exports. The Department of Labor also announced initial unemployment claims for the week ending August 23, totaling 229,000, a 5,000 drop from the revised figure for the preceding week. At 234,000, marginally superior to the 230,000 predicted, ongoing claims decreased by 7,000 to 1,954,000, suggesting a slightly better labor market, notwithstanding high levels.
The pair is holding above the 55 EMA, 200 EMA, and 365 EMA in the one-hour chart. Near-term resistance is seen at 1.1700; a break above this may push the pair to targets of 1.1765/1.1800/1.1835/1.1900. On the downside, support is seen at 1.1620; any violation below will drag the pair to 1.15750/1.1545/1.1480/1.1435.
Market Indicators and Trading Strategy
Commodity Channel Index (CCI)- Bullish
Average Directional Movement Index (ADX) - Bullish
It is good to buy on dips around 1.1628-30 with a stop-loss at 1.1570 for a target price of 1.1835.
