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A dearth of economic data on Tuesday will keep investors fixated on the latest developments concerning US-China trade negotiations. In terms of economic data, a small handful of releases are scheduled for Tuesday.

Action begins at 06:00 GMT with a report on Switzerland's trade balance. The Swiss surplus is forecast to widen in July as export growth continues to outpace imports.

Shifting gears to the United Kingdom, the Office for National Statistics will report on public sector net borrowing at 08:30 GMT. Later in the session, the Confederation of British Industry (CBI) will release the monthly industrial trends survey for August. The headline indicator is forecast to drop to 9 from 11 the previous month.

In North America, the Canadian government will report on wholesale sales at 12:30 GMT. The category likely rose 0.8% in June, according to a median estimate of analysts. Wholesale sales jumped 1.2% the month before.

Commodity traders will also be keeping tabs on weekly crude inventory data courtesy of the American Petroleum Institute (API). The official inventory report from the US Energy Information Administration (EIA) is due the following morning.

Last week, the White House confirmed that China will send a trade envoy to Washington before the end of the month to kickstart negotiations. On Friday, it was also revealed that both sides are plotting a roadmap to resolve their trade dispute before a multinational summit in November involving US President Donald Trump and Chinese counterpart Xi Jinping.

USD/CAD

The North American cross continued to backpedal on Monday, as rebounding oil prices and a weaker greenback hoisted the loonie following weeks of volatility. The USD/CAD exchange rate now sits at 1.3034, with immediate support located at the psychological 1.3000 handle. Below that level, the next cluster of support is located at 1.2975. A meaningful recovery attempt will likely run into resistance at 1.3100, followed by 1.3140.

EUR/USD

Europe's common currency rallied on Monday to a fresh 10-day high, as a weaker dollar magnified the performance of competitor currencies. The EUR/USD exchange rate is back trading above 1.1500. At the time of writing, the pair had gained 0.2% to 1.1516. At present values, the pair faces immediate resistance at 1.1615, the high from 9 August. On the opposite side of the ledger, immediate support is located at 1.1395.

GBP/USD

Like other dollar pairs, cable spiked on Tuesday and returned above 1.2800 for the first time in six days. At the time of writing, GBP/USD had gained another 0.2% to 1.2824. The pair is testing the 1.2825-region, and a meaningful break higher could send prices toward 1.2900 in the short term.

UK Department for International Trade launches an "ambitious" strategy to boosts exports to 35% of GDP. In a statement released today, it's noted that the country exported GBP 620B in goods and services last year. That accounted for 30% of UK GDP. The department noted estimated that 400,000 businesses believe they could export by don't. And from overseas is "only growing".

The key elements of the strategy are:

• encourage and inspire more businesses to export
• inform businesses by providing information, advice and practical assistance on exporting
• connect UK businesses to overseas buyers, markets and each other
• put finance at the heart of our offer

International Trade Secretary is expected to tell business audience in a speech that "UK has the potential to be a 21st century exporting superpower". And, "as we leave the EU, we must set our sights high and that is just what this Export Strategy will help us achieve."

The strategy draws strong support from the business sectors. CBI Diretor-General Carolyn Fairbain said in the statement that "The CBI strongly supports the ambition to make exports 35% of GDP, which will put the UK out in front of many of our international competitors." And, "firms will work with the strong team in place at the Department for International Trade to ensure these plans are now rigorously carried out."

Director General of the British Chambers of Commerce Adam Marshall also said that "we welcome the government's pledge in the new Export Strategy to work hand-in-hand with business to unlock opportunities for UK firms all across the globe."

Director General of the Institute of Directors Stephen Martin also said "we will be encouraging our members to engage with government to make sure this strategy really takes off and enables British firms to realize their full trading potential."

Full statement here.

GBPUSD recorded a respectable bullish rally over the last three days after it created a new 13-month low of 1.2660 on August 15. The price seems to be in an upward correction mode as the short-term technical indicators confirm.

The RSI indicator is currently increasing positive momentum towards its neutral threshold of 50 after an exit from oversold levels, while the green %K line of the stochastic oscillator followed by the red % D line is moving towards the overbought area. However, the cable is still trading below the 20- and 40-simple moving averages (SMAs), signaling that the medium-term bearish outlook still stands.

Should the market extend gains, resistance could be met between the 20-SMA at 1.2920 and the 1.2960 resistance barrier. A significant leg above this area could send prices towards the 23.6% Fibonacci retracement level of the downleg from 1.4375 to 1.2660, around 1.3066. The 40-SMA is also placed around this level at the moment, giving some importance to the area.

On the flip side, if the pair retreats, immediate support could come from the 1.2660 key level. Below that downside pressure could strengthen until the 1.2580 barrier, taken from the low on June 21.

Turning to the medium-term picture, the outlook remains negative as long as GBPUSD maintains the steep downfall from the 1.4375 peak.

The Euro extends recovery rally into fourth straight day, supported by softer dollar and cracked very strong barriers at 1.1542/45 (falling 20SMA / weekly cloud base). The single currency received additional boost from comments of President Trump, who reiterated his stance regarding raising US interest rates, as well as caution ahead US/China trade talks, which pushed the greenback into defensive mode. Monday's close above pivots at 1.1454 (10SMA) and 1.1470 (Fibo 38.2% of 1.1745/1.1302 descend) confirmed Doji reversal pattern on daily chart and generated bullish signal for recovery extension. Fresh bulls faced so far strong headwinds at 1.1445 resistance zone and may hold in extended consolidation before fresh attempts higher, with overbought slow stochastic supporting scenario. Extended dips should be contained above broken 10SMA to keep near-term bulls in play for renewed attack at 20SMA / weekly cloud base pivotal barriers. Break and close above 20SMA would be bullish signal for recovery extension towards 1.1575/83 (Fibo 61.8% / falling 30SMA) and 1.1627 (55SMA). Caution on repeated upside failure, as thick weekly cloud weighs heavily and may cap recovery action. Return and close below 10SMA would weaken near-term structure and risk fresh acceleration lower.

Res: 1.1545, 1.1575, 1.1627, 1.1640
Sup: 1.1470, 1.1446, 1.1405, 1.1394

Pivot (invalidation): 64.85

Our preference Long positions above 64.85 with targets at 65.85 & 66.20 in extension.

Alternative scenario Below 64.85 look for further downside with 64.30 & 63.90 as targets.

Comment The RSI is supported by a rising trend line.

Pivot (invalidation): 14.6200

Our preference Long positions above 14.6200 with targets at 14.8400 & 14.9600 in extension.

Alternative scenario Below 14.6200 look for further downside with 14.4800 & 14.3100 as targets.

Comment The RSI advocates for further advance.

Pivot (invalidation): 1187.00

Our preference Long positions above 1187.00 with targets at 1196.00 & 1202.00 in extension.

Alternative scenario Below 1187.00 look for further downside with 1180.00 & 1173.00 as targets.

Comment The RSI shows upside momentum.

Pivot (invalidation): 1.1365

Our preference Long positions above 1.1365 with targets at 1.1410 & 1.1435 in extension.

Alternative scenario Below 1.1365 look for further downside with 1.1340 & 1.1325 as targets.

Comment The RSI is mixed with a bullish bias.

Pivot (invalidation): 0.8960

Our preference Long positions above 0.8960 with targets at 0.9000 & 0.9010 in extension.

Alternative scenario Below 0.8960 look for further downside with 0.8940 & 0.8925 as targets.

Comment The RSI lacks downward momentum.

Pivot (invalidation): 0.7315

Our preference Long positions above 0.7315 with targets at 0.7380 & 0.7395 in extension.

Alternative scenario Below 0.7315 look for further downside with 0.7285 & 0.7265 as targets.

Comment The RSI calls for a bounce.