NEW YORK ( TheStreet) - The New Year sideways chop across global markets continues unabated with equity and commodity trade at the beck and call of continued low-volume sporadic bursts of price action that struggle to easily break and then hold the previous session price-action points.

The dollar found buyers in early trade in reaction to weak Australian economic reports that forced automated trade to align the major currencies but did not impact commodity or equity trade.

European markets traded flat and with a light U.S. economic calendar it was once again down to whatever the high frequency algorithms generated in Wall Street trade. German Dax futures found support once again near the 50-day moving average around 6900 and helped to provide a bounce to U.S. equity futures, halting a three- day losing streak.

The Japanese Nikkei has managed to move higher and now runs into strong resistance near the 10,570 area. There was a move higher in S&P 500 trading that tested 1275 resistance, but was too late in the session to drag global equity markets higher.

WTI oil and gold advanced after Japan agreed to purchase financial aid funds to help support Europe's debt crisis. Gold then suffered a heavy reversal from 1385 to test bids at 1370 in a 60-minute period of trade as U.S. markets opened. Oil and silver held the overnight tests of 90.50 and 29.50, neither of which was able to impact Usd trade.

Most global markets have increased their intra-day trading ranges, but few are managing to break and hold previous session highs and lows without volatile reactions. Liquidity is thin and the cost of doing inter-bank business is increasing in-line with higher credit default swaps and Treasury interest rates.

Although most major pairs moved from their opening prices to test previous session highs and lows, none has been able to break and hold, with most closing out the period with net-sum gains. Areas to note include the fall of gold from the 20- and 50-day moving averages at 1384 to 1370 in-line with aussie being rejected from the 20- and 50-day SMA areas for the sixth consecutive, volatile, down day.
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Marco Hague is one of the founders and principals of The London Forex Broadsheet (commonly known as TheLFB), a global forex trader portal with headquarters in the U.S. Hague began his career with the Bank of England dealing with foreign exchange control, and he has been trading for the last three decades. He has been involved with institutional risk asset ratio analysis and the implementation and maintenance of institutional trade desks globally.

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