EUR/USD back in the red below 1.1400 post-Sentix

The EUR/USD pair turned negative once again, following the release of the Eurozone Sentix Investor Confidence data, which failed to impress the EUR bulls.

EUR/USD: Focus shifts to US LMCI

The spot eroded 20-pips rapidly and dropped back below 1.14 handle after the Eurozone Sentix data came in below market expectations, showing that  investors were more pessimistic than ever before about the impact of the ECB tapering on the European bond market. European Monetary Union Sentix Investor Confidence below expectations (28.4) in July: Actual (28.3)

The downside, however, remains cushioned amid tumbling Treasury yields, as the recent ECB’s hawkish twist overshadows stronger NFP-induced rising Dec Fed rate hike expectations.

With the Eurozone Sentix data out of the way, focus now remains on the US Labour Market Condition Index due later in the NA session. Meanwhile, Fed Chair Yellen’s testimony and the key US inflation figures will set the tone for the buck in the coming days.

EUR/USD Technical Levels

According to Valeria Bednarik, Chief Analyst at FXStreet, “There's a short term ascendant trend line, coming from 1.1290 the low set last June 28th, today in the 1.1330/40 region, providing the next short term intraday support for today. To the upside, the pair has topped twice weekly basis around 1.1440, but still needs to break beyond 1.1460, a major long term static resistance, to gain upward strength and head towards the 1.1500 price zone.”