EUR/USD analysis: Witnesses some profit-taking after not so dovish comments by Bullard and Powell

• Not so dovish comments by influential FOMC members lend some support to the USD.
• A modest USD rebound prompts some profit-taking amid near-term overbought conditions.
• Wednesday’s economic data from the Euro-zone and the US eyed for some fresh impetus.

After an initial uptick to a fresh three-month high level of 1.1412, the EUR/USD pair witnessed an intraday turnaround on Tuesday and snapped four consecutive days of winning streak amid a goodish US Dollar rebound. Traders largely ignored weaker US macro releases, suggesting that the outlook of the US economy has weakened. Data released on Tuesday showed new home sales plunging -7.8% in May and the US consumer confidence index unexpectedly falling to 121.5 in June from the previous month's downwardly revised reading of 131.

Meanwhile, the USD bulls were encouraged by not so dovish comments by St Louis Fed President James Bullard. The most dovish Fed official, in a Bloomberg interview on Tuesday, dismissed a 50bps rate cut. The greenback recovery got an additional boost after the Fed Chair Jerome Powell said that it is important not to overreact to any individual data point or short-term swing in sentiment, which prompted some long-unwinding trade around the major amid near-term overbought conditions.

The pair dropped to an intraday low level of 1.1344 but managed to settle around 20-pips off daily lows, albeit met with some fresh supply during the Asian session on Wednesday. The sentiment surrounding the single currency will now be influenced by Wednesday's release of German Gfk consumer confidence index for June. With forecasts pointing to a minor decline, any disappointment could exacerbate worries over a sharp slowdown in the Euro-zone’s largest economy and weigh heavily on the Euro.

Later during the North-American session, market participants will confront the release of US durable goods orders data, which might further collaborate towards producing some meaningful trading opportunities. Consensus estimates point to a strong rebound in May, though any fresh disappointment might turn the greenback vulnerable to remain under some selling pressure in the days ahead. 

From a technical perspective, nothing seems to have changed much for the pair except that bulls might now await a sustained move beyond the 1.1400 mark before positioning for any further near-term appreciating move. Above the mentioned handle, the pair seems all set to aim towards testing March monthly swing highs, around the 1.1445-50 region - nearing 50% Fibonacci retracement level of the 1.1803-1.1107 downfall. 

On the flip side, the descending trend-channel resistance breakpoint, around the 1.1330-25 region, might continue to protect the immediate downside. Failure to defend the mentioned support might trigger some technical selling and accelerate the corrective slide further towards 23.6% Fibo. level - around the 1.1275-70 region, with some intermediate support near the 1.1300 round figure mark.