The ECB is back. EUR/USD’s abrupt decline in response to the ECB decision seems to have found some support in the mid-1.0800s so far ahead of Draghi’s press conference. EUR/USD threatens 2-week lows Spot continues to lose ground after the ECB has surprised market participants today, lowering its refi rate, deposit rate and lending rate to 0.00%, -0.40% and 0.25%, respectively. In addition, the central bank has announced it will step up its monthly purchases of bonds under its ‘quantitative easing’ programme to €80 billion from €60 billion, starting in April. The ECB will also launch four TLTROs (TLTRO II), starting in June 2016 and with a maturity of four years. The pair has come down nearly two cents since overnight tops in the vicinity of 1.1040, and it is expected to remain under pressure in light of the press conference by President Draghi. EUR/USD levels to watch The pair is now losing 1.25% at 1.0866 facing the next support at 1.0823 (low Mar.2) ahead of 1.0777 (low Jan.21) and finally 1.0709 (2016 low Jan.5). On the upside, a breakout of 1.1043 (200-day sma) would expose 1.1101 (50% Fibo of 1.1379-1.0823) and then 1.1166 (38.2% Fibo of 1.1379-1.0823). For more information, read our latest forex news.