EUR/USD pares gains to test 1.1400 on poor Eurozone Sentix

• A sharp drop in Eurozone Sentix investor confidence, USD rebound knocks-off EUR/USD
• Risk-off in European equities lifts the safe-haven bids for the greenback.

The EUR/USD pair extends its retreat from two-week tops near 1.1440 region and now tests the 1.1400 level after the sentiment around the Euro was badly hit by awful Eurozone Sentix investor confidence numbers.

The gauge slumped to -0.3 in December vs. 8.3 expected and 8.8. The reading fell into negative territory for the first time since December 2014 amid Italian budget woes, French political climate and German economic slowdown fears.

The retreat in the spot was triggered by a broad-based US dollar rebound, as persisting risk-off action on the global stocks boosted the safe-haven demand for the US currency. The USD index extends its rebound from two-week lows of 96.37 to now trade near 96.70, up +0.16% on the day.

In the day ahead, fresh Italian and French political developments could impact the Euro while the USD dynamics is likely to remain the exclusive driver amid a data-sparse US docket today.

EUR/USD Technical Levels