EUR/USD clings to gain above 1.2200 handle

   •  A modest USD pull-back helps regain traction.
   •  Surging US bond yields likely to cap additional gains.
   •  US economic data might provide trading opportunities.

The EUR/USD pair built on its steady up-move through the early European session and has now jumped o fresh session tops, around the 1.2215 region.

A modest US Dollar retracement helped the pair to bounce off 1.2165 support, weekly lows, and recover part of previous session's sharp retracement slide from 3-year tops. 

However, a fresh leg of upsurge in the US Treasury bond yields might now keep a lid on the pair's steady up-move. In fact, 2-yr yields broke out to the highest level since 2008 and 10-yr yields held just under 2.60%, March 2017 highs, which should underpin the greenback demand, at least for the time being.

There isn't any market moving data due from the EZ and hence, traders would look forward to the US economic docket, featuring the release of housing market data, Philly Fed Manufacturing Index and the usual weekly initial jobless claims, for some fresh trading impetus.

Technical levels to watch

Any subsequent up-move is likely to confront resistance near the 1.2230 area, above which the pair is likely to head back towards 1.2260-65 supply zone before darting back towards the 1.2300 handle.

On the downside, weakness back below the 1.2200 handle might continue to find some support near the 1.2165 region, which if broken might turn the pair vulnerable to slide back towards the 1.2100 round figure mark.