EUR/USD side-lined near 1.1400, eyes German trade, Sentix

The EUR/USD pair extends its side-trend into early Europe, having traded in a 10-pips range around 1.14 handle throughout the Asian session.

EUR/USD: Post-NFP recovery to extend?

The spot remains better bid so far this Monday, although the bulls lack momentum, as the dust settles over Friday’s US employment report release, with stronger-than expected headline NFP numbers having boosted a Dec Fed rate hike and almost sealed in a Sept start to the Fed’s balance sheet normalization plans.

However, the sentiment continues to remain underpinned around the Euro, following the recent hawkish surprise from the ECB over the last weeks, after the ECB policymakers noted that reflation have now replaced deflation in the Euro area. ECB’s Knot: Reflation has 'clearly' replaced deflation

Stepping into a brand new week, the EUR calendar remains data-light this week, while the US docket has plenty of risk events in-store, including the CPI, retail sales and industrial production. However, the immediate focus now remains on the German trade balance and Eurozone Sentix Investor Confidence data due later today.

EUR/USD Technical Levels

According to Karen Jones, Analyst at Commerzbank, “EUR/USD outlook is capable of re-testing the 2 year resistance line at 1.1462, but should remain capped there: The Euro has recovered off the May high circa 1.1296 and is capable of re-testing the two year resistance line at 1.1464. With a 13 count evident on the daily chart, and TD resistance at 1.1521, we look for this to cap. The market will find immediate support at the 1.1272 4 month uptrend and this guards the more important 1.1110 end of May low.”