After volatile trading last week, the Forex markets have traded within tight ranges to start the week. The EURUSD and GBPUSD, which had multiple greater than 150 pips moves last week have settled within 60 pip ranges. Only the USDJPY, which has fallen from highs of around 92.00 to 91.00 has shown much of any movement this week.

Two reasons may be causing the tight ranges. First, after last week's surprise FED rate hike of the discount rate, Forex traders are continuing to analyze the event and decide if this is a one shot deal, or is the US seriously moving towards an accelerated time plan for interest rate hikes. On one hand the FED put their money where their mouth is and actually made a change. However on the other hand, global inflation remains lows and the FED therefore, may not feel any compelling reason to raise rates.

The second reason is that this is a light news week with few highly anticipated economic releases. We will have some headlines as Consumer Confidence and Inflation Expectation results are released, however, they aren't expected to cause a new multi day direction to take place. As such, barring any new developments taking place in the world, trading volatility may continue to be minimal this week.

Nonetheless, trading action is expected to intensify today when compared to yesterday's session as US Consumer Confidence, UK Inflation Expectations, and German Ifo Sentiment will be released. All three items could cause us to break out of our current ranges.

EURUSD Support/Resistance 1.3440/1.3655
GBPUSD Support/Resistance 1.5350/1.5500
USDJPY Support/Resistance 91.00/92.10