March 27 (Reuters) - EUR/USD continues to decline and foreign exchange traders can use a simple option strategy to insure against a bigger EUR/USD setback in the near-term.

The euro bounced off a three-week low touched earlier on Thursday after U.S. President Donald Trump slapped a 25% tariff on imported cars and light trucks starting next week, even as the prospect of an all-out trade war dimmed risk sentiment.

EUR/USD fell to 1.0733 on Thursday and is in danger of a much bigger decline from the March 1.0955 peak. Spot was capped by the major 1.0957 Fibo, a 76.4% retrace of the 1.1214 to 1.0125 (September to February) EBS drop.

Those who want to insure against a bigger EUR/USD fall can buy a one-week 1.0760 EUR put option at a cost of 45 pips, priced with spot at 1.0765. Profit potential is unlimited if spot is below the 1.0715 breakeven point at the April 3 expiry, while losses are limited to the 45 pips premium paid.

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(Martin Miller is a Reuters market analyst. The views expressed are his own. Editing by Alison Williams)