EUR/USD is well bid in Asia, eyes yield spread

The pull back in the US treasury yields seen on Friday following the release of the US non-farm payrolls and wage growth data is keeping the EUR/USD pair well bid in Asia.

The currency pair is trading around 1.0690 with the 10-year treasury yield flat lined around 2.584%. The yield clocked a high of 2.624% on Friday before retreating to 1.575%.

Macron could beat Le Pen in French election - Poll

A new poll of French voter intentions on Saturday showed Emmanuel Macron is still likely to defeat candidate Marine Le Pen. This is good news for the EUR bulls. However, Beleaguered French presidential candidate Francois Fillon was put on the defensive again over the weekend following two fresh controversies.

That could increase the odds of Le Pen victory. Traders need to keep an eye on the US-German 2-year yield spread. The pair could strengthen further in the European session if the yield spread narrows.

Moreover, Eurozone trade balance and current account numbers are healthy. In fact the current account surplus stands at 3.7% of Eurozone GDP. Thus, EUR weakness is slightly confusing.

EUR/USD Technical Levels

A break above 1.07 (zero figure + Friday’s high) would expose 1.0775 (Jan 24 high), above which gains could be extended to 1.08 (zero figure). On the other hand, a breakdown of support at 1.0672 (session low) could yield a pullback to 1.0609 (5-DMA) and 1.0588 (10-DMA).