Forex: Dollar take small gains, soft trade expected in Asia

By IBTimes Staff Reporter | December 30 2009 7:42 PM

FXstreet.com (London) - Wall Street edged higher in the previous session on ultra thin trade as market players became preparations to see out 2009.Dollar also edged higher as positive sentiment around the Greenback continued to ferment around the market.

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While Dollar broadly gained across its major pairs today, during the opening minutes in Asia they look like this: EUR/USD 1.4343/46 (+0.04%), Swissy 1.0360/64 (-0.05%), Cable 1.6074/77 (-0.01%), USD/JPY 92.52/55 (+0.02%).

EUR/USD has traded softly so far during Asian trade, moving slightly to the upside off the open. Market volatility is expected to pick up massively when we open in 2010 after the long weekend. The 'January effect' (which sees stock markets typically rise in January), new inflows and the four days variance will all come into play.

The pair has traded in a narrow range, 1.4337-1.4344, as it now attempts to breach to the upside. Valeria Bednarik, collaborator at FXstreet.com guides us: Bias for EUR/USD remains bearish as long as under 1.4365 resistance area. Hourly indicators show pair mostly flat, with no clear bias for next hours, as well as bigger time frames. Back under 1.4305 area, pair could regain past Wednesday bearish momentum and retest the lows 1.42..

The pair is up just 6 pips from the open and currently trades at 1.4344/6

.