FXStreet (Edinburgh) - The European currency has faded the initial spike to the 1.0880 area vs. the greenback, with EUR/USD now trading in red figures in the 1.0845/40 band. EUR/USD lower on USD recovery Spot has faded the earlier spike to session highs, as risk aversion seems now to be taking a breather, allowing the risk appetite to reclaim some ground lost. Another pullback from Chinese equities has triggered a wave of risk aversion overnight, although its effects have somewhat ebbed at the moment. Absent releases in the euro area today, the US docket will come to the fore, with Consumer Confidence, the S&P/Case-Shiller index and Markit’s Services PMI due later. EUR/USD levels to watch The pair is now retreating 0.13% at 1.0840 with the immediate support seen at 1.0777 (post-ECB low Jan.21) followed by 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709 (low Jan.5). On the other hand, a breakout of 1.0980 (100-day sma) would target 1.1054 (200-day sma) en route to 1.1059 (high Dec.15). For more information, read our latest forex news.