Not much action is expected in forex markets until Wednesdays FOMC. Although most expect rates to remain unchanged, what will the strategy over the next meetings and the tone of the announcement after the rate decision that will affect expectations.

The Dollar index has ended last week on a strong note and has reached the 61.8% Fibonacci retracement resistance of the decline from 98.24. This is important resistance level and I believe there will be no clear break out or rejection until Wednesday. Traders should be very patient. The most important price levels are 98.24 and 96.37. Only these two levels are the most clear indicators of what the medium-term will be. Breaking either will decide the trend for next few weeks. Until then traders should be patient and ignore noise.