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The U.S. Dollar was trading mixed on Tuesday as the Euro posted a strong rebound. Economic data was sparse. Canada's Ivey PMI report showed that the index increased to 61.8, missing estimates of 64.2 and down from the previous 63.1.

New Zealand's inflation expectations for the quarter showed a 2.0% increase, rising at the same pace as before. The economic data for the remainder of the day will see the release of Canada's building permits report. FOMC member Barkin is expected to speak later this evening.

Investors will be turning to the RBNZ later tonight for its monetary policy decision. The RBNZ is set to hold interest rates unchanged at today's meeting.

The euro has moved above the 1.1600 level against the greenback, as the US dollar index trades lower over improving risk-on trading sentiment. The EURUSD pair is increasingly likely to test major trendline resistance, which is currently located at the 1.1630 level. Sellers need to force price back below the 1.1600 level, while buyers now need to push the price back inside the symmetrical triangle pattern.

The EURUSD pair is only intraday bearish while trading below the 1.1600 level, key support is now found at the 1.1553 and 1.1527 levels.

If the EURUSD pair moves above the 1.1630 resistance level, buyers are likely to test towards the 1.1650 and 1.1681 resistance levels.

The British pound remains pressured against the US Dollar, with price currently unable to move away from an eleven-month trading-low. The GBPUSD pair failed to gain traction above the 1.2955 level on Tuesday, despite the MACD indicator on the four-hour time frame correcting from oversold conditions. Further losses seem increasingly likely while the pair trades below the 1.2955 level, which represents the neckline of a bearish head and shoulders pattern.

The GBPUSD pair remains strongly bearish while trading below the 1.2955 level, key support is found at the 1.2915 and 1.2880 levels.

If the GBPUSD pair moves above the 1.2955 level, key resistance is now found at the 1.2975 and 1.3000 levels.

The BTCUSD pair has tumbled below key support after the US Securities and Exchange Commission delayed a major decision on a Bitcoin ETF until September. The recent decline in the BTCUSD pair means that the world’s number one cryptocurrency has now erased July’s trading gains. Bitcoin is likely to come under heavy selling pressure while price trades below the key $6,730 level.

The BTCUSD pair is strongly bearish while trading below the $6,730 level, key technical support is located at the $6,250 and $5,700 levels.

If the BTCUSD pair moves above the $6,730 level, the price may correct back towards the $6,838 and $6,990 resistance levels.

With the exception of Chinese trade data, the economic calendar on Wednesday features very little in the way of market moving events. That’s about to change in the second half of the week as the United States, United Kingdom and China release a fresh batch of economic figures.

The European session opens with a pair of low-volatility data releases in the form of French individual investment and Spanish industrial output. Neither event is expected to generate much activity in the currency markets.

In North America, the Mortgage Bankers Association (MBA) will release weekly mortgage applications data at 11:00 GMT. The release is not expected to move markets.

North of the border, the Canadian government will report on building permits at 12:30 GMT. Permits are forecast to rise 1% in June after falling 4.7% the month before.

In the United States, Federal Open Market Committee (FOMC) member Thomas Barkin is scheduled to deliver a speech at 12:45 GMT. Barkin and his colleagues are widely expected to vote in favor of raising the benchmark interest rate next month. The September rate announcement will be accompanied by a revised summary of economic projections covering GDP, unemployment and inflation.

In commodities, the US Energy Information Administration (EIA) will release its weekly crude inventory data for the period ending 30 July. Crude stockpiles are projected to fall by 3.4 million barrels following an unexpected gain of 3.8 million barrels the previous week.

EUR/USD

Europe’s common currency recovered lost ground on Tuesday, as the dollar fell against a basket of world peers. The EUR/USD exchange rate bounced from a low of 1.1545 at the beginning of the week to a high of 1.1609 on Tuesday. Despite the rally, the pair faces a bearish formation with immediate support located at the 28 June low of 1.1527. On the flipside, the pair is testing immediate resistance in the 1.1600-1.1620 range.

GBP/USD

Cable attempted a modest recovery on Tuesday before prices swung back to the 1.2940 region. GBP/USD has experienced a sharp downtrend since the beginning of the month, with prices falling more than 200 pips in the process. According to Commerzbank, cable could face renewed bearish pressure, which could knock prices all the way down to 1.2866.

USD/CAD

The USD/CAD exchange rate received a large boost on Monday, as the pair reclaimed the 1.300 handle following a volatile end to last week. The pair now sits at 1.3057, where it was down slightly from the previous close. In terms of technical indicators, the North American cross faces immediate support at 1.3000, followed by 1.2960.

For the 24 hours to 23:00 GMT, the EUR rose 0.36% against the USD and closed at 1.1600.

In the economic news, Germany's seasonally adjusted trade surplus widened to €21.8 billion in June, more than market expectations for a trade surplus of €20.9 billion. The nation had registered a trade surplus of €19.7 billion in the previous month. Meanwhile, the nation's seasonally adjusted industrial production retreated 0.9% on a monthly basis in June, higher than market expectations for a decline of 0.5%. In the previous month, industrial production had climbed 2.60%.

In the US, data indicated that US consumer credit advanced less than expected to $10.21 billion in June, after registering a revised rise of $24.3 billion in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.1609, with the EUR trading 0.08% higher against the USD from yesterday's close.

The pair is expected to find support at 1.1571, and a fall through could take it to the next support level of 1.1532. The pair is expected to find its first resistance at 1.1629, and a rise through could take it to the next resistance level of 1.1648.

Later in the day, investor sentiment will be determined by the release of the US MBA mortgage applications.

For the 24 hours to 23:00 GMT, the GBP declined slightly against the USD and closed at 1.2943.

Data revealed that UK's Halifax house price index advanced 3.3% on a yearly basis in the three months ended May-July 2018, marking its largest increase in 9-months and more than market expectations for a rise of 2.7%. In the April-June 2018 period, the index had risen 1.8%.

In the Asian session, at GMT0300, the pair is trading at 1.2943, with the GBP trading flat against the USD from yesterday's close.

The pair is expected to find support at 1.2920, and a fall through could take it to the next support level of 1.2897. The pair is expected to find its first resistance at 1.2970, and a rise through could take it to the next resistance level of 1.2997.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose slightly against the JPY and closed at 111.37.

On the data front, Japan's flash leading economic index dropped to a level of 105.2 in June, while market participants had expected for a fall to a level of 105.3. In the prior month, the leading index had recorded a level of 106.90. Moreover, the nation's preliminary coincident index eased to 116.30 in Japan, compared to market expectations for a drop to a level of 116.20. In the previous month, the coincident index had recorded a reading of 116.80.

In the Asian session, at GMT0300, the pair is trading at 111.36, with the USD trading a tad lower against the JPY from yesterday's close.

Overnight data showed that Japan's posted a trade surplus (BOP basis) of ¥820.5 billion in June, undershooting market consensus to record a surplus of ¥822.0 billion. In the prior month the nation had registered a trade deficit of ¥303.8 billion.

The pair is expected to find support at 111.07, and a fall through could take it to the next support level of 110.79. The pair is expected to find its first resistance at 111.56, and a rise through could take it to the next resistance level of 111.77.

Moving ahead, investors will await the release of Japan's machine orders for July, set to release overnight.

The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD declined 0.08% against the CHF and closed at 0.9955.

In the Asian session, at GMT0300, the pair is trading at 0.9950, with the USD trading 0.05% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9931, and a fall through could take it to the next support level of 0.9913. The pair is expected to find its first resistance at 0.9968, and a rise through could take it to the next resistance level of 0.9987.

In absence of key economic releases in Switzerland today, investor sentiment would be determined by global macroeconomic events.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.44% against the CAD and closed at 1.3060.

Macroeconomic data showed that Canada's seasonally adjusted Ivey PMI expanded at a slower pace to record a level of 61.8 in June, following a level of 63.1 in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.3055, with the USD trading marginally lower against the CAD from yesterday's close.

The pair is expected to find support at 1.2986, and a fall through could take it to the next support level of 1.2918. The pair is expected to find its first resistance at 1.3099, and a rise through could take it to the next resistance level of 1.3144.

Looking forward, traders will keep an eye on Canada's building permits for June, scheduled to release later in the day.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.