EUR/USD extended its decline for a third consecutive session on Thursday as the US dollar recovered from recent lows and the dollar index, or DXY, reached a two-week high. Stronger-than-expected US retail sales and jobless claims data, along with hawkish comments from Federal Reserve officials, have reduced expectations for aggressive near-term rate cuts. CME FedWatch shows markets pricing in roughly a 60% chance of a quarter-point cut in September, down from more than 70% a week earlier. Softer eurozone PMI readings and the European Central Bank's cautious approach to policy easing have reinforced the monetary-policy divergence favoring the dollar. EUR/USD has fallen below its 50-day moving average, with support at 1.0800 and then 1.0750, while resistance stands at 1.0880 and 1.0900. Traders are watching upcoming US inflation data and ECB commentary, while investors with international exposure are assessing the stronger dollar's effects on multinational earnings, commodity prices and dollar-denominated debt. Risk management remains important as the pair's broader trend is still unclear.