The EUR/USD recently dipped nearly 40 pips over the Asian session after the Japanese government kept its assessment of the economy unchanged for August. The pair hit a support level at 1.3180 before consolidating downwards, where it currently trades at 1.3157.

The dollar staged a rebound against major currencies on Tuesday as traders pared short positions on looming uncertainty about whether the U.S. Federal Reserve will start a new phase of quantitative easing to deal with a slowing economy.

Much uncertainty surrounds the Federal Reserve's policy meeting today with the market deeply divided over what the Fed might do, beyond a rough agreement that it will sound more cautious on the recovery. This recent wave of pessimism in the U.S. has helped drive the dollar downwards against most of its currency rivals since June.