The USD remained relatively steady against most of its counterparts yesterday, as US markets were closed for Thanksgiving in the US, as noted yesterday. Analysts tend to expect that also today low volatility and thin trading conditions may apply, as the US is in an extended weekend. Some analysts note that there may be some month end selling pressure. Across the Atlantic the common currency tended to gain slightly against the USD and GBP and at lost some ground against JPY and CHF. ECB’s minutes of the October meeting were released yesterday and had a dovish tone. The minutes showed that policymakers were on guard, given the second wave of the pandemic and laid ground for more stimulus to come for the area’s economy. ECB’s chief economist Philip Lane stated that enduring "a longer phase of even lower inflation" would hurt consumption and investment as well as cementing expectations for low price growth in the future, as reported by Reuters. We expect that volatility is to remain low, yet EUR traders could also be focusing on today’s financial releases. EUR/USD remained relatively unchanged yesterday around the 1.1910 (S1) line. We tend to expect the pair to maintain its sideways motion currently. Yet it should be noted that the pair’s RSI indicator below our 4-hour chart seem to be reminding us of the presence of the bears as it is above the reading of 50 and aiming upwards. Should the pair find extensive fresh buying orders along its path, we could see it aiming if not breaking the 1.1965 (R1) line which hasn’t seen any price action since the 1st of September. If a selling interest is displayed, we could see EUR/USD breaking the 1.1910 (S1) line and aim for the 1.1850 (S2) level.
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