EUR/USD fades an uptick to 1.1040, but keeps 1.10 handle

After bottoming out just ahead of 1.10 handle, the EUR/USD pair is seen consolidating the downside amid persisting risk-off trades, as we head into early Europe.

EUR/USD holds key psychological level – 1.1000

Currently, EUR/USD trades modestly higher at 1.1017, reversing a spike to daily highs previously posted at 1.1038. The main currency pair struggles to keep the bids after the USD selling stalled over the last hour.

 While poor risk tone prevalent in the markets, in response to dismal Chinese trade data, keeps the sellers around the funding currency EUR at bay. However, the major looks vulnerable and a break below 1.1000 levels could trigger stop orders, which are expected to prompt a massive EUR/USD sell-off eventually.

Amid a data-light EUR calendar in the day ahead, markets will take cues from the persisting risk trends, while awaiting the US unemployment claims data for fresh impetus.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.1038 (daily high). A break beyond the last, doors will open for a test of 1.1082 (5-DMA) and from there to 1.1100 (round number). On the flip side, the immediate support is placed at 1.1000 (key psychological support) below which 1.0959 (Jul 27 low) and 1.0911 (daily S3) could be tested.