EUR/USD has quickly faded yesterday’s bullish attempt to the 1.1040 region, returning to the comfort zone around 1.0970 ahead of the ECB event. EUR/USD looks to Draghi for direction It’s all about the ECB today. Cautiousness has taken over sentiment and is prompting the pair to extend the overnight sideline pattern into the European session around the 1.0970/75 band. Market consensus remains divided on today’s ECB decision. Although a 10 bp deposit rate cut could be already priced in, skepticism persists amongst traders over the possibility that the central bank could disappoint markets once again, imitating the outcome of the December meeting. EUR/USD levels to watch The pair is now losing 0.22% at 1.0981 facing the next support at 1.0911 (100-day sma) ahead of 1.0823 (low Mar.2) and then 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). Trade the ECB rate decision and Mario Draghi speech – Live Coverage For more information, read our latest forex news.