The Hoops were blitzed 5-0 at home against big-spending Paris Saint-Germain in their opening group game but followed it up with a convincing 3-0 win in Belgium against Anderlecht.
German champions Bayern were being beaten 3-0 by PSG on the same night and it now looks like becoming a straight fight between them and the Scottish champions as to who will go through to the knockout stages.
The sides meet home and away in the next two group games and Sinclair feels Brendan Rodgers' men can come out on top.
He said: "We have confidence and no matter who we play we’ll give 100% and try to get the result.
"If we play like we did the other night we can give Bayern a tough game.
"With our quality we have to go with the aim of getting through the group. We give that a go and if we fall short then we go into the Europa.
"The main focus is still the Champions League – we’ll try and progress and see where it takes us. We’ve gone through the qualifiers and worked hard to get where we’re going and we have to stick together and make sure we do as well as we can."