EUR/USD bears lurk around 1.10 the figure, markets await Ukraine peace talk news

• EUR/USD holds in a tight range for Asia below 1.10 the figure.
• Price is trapped between hourly support and resistance below a bearish counter trendline.

EUR/USD is trading around 0.1% higher after climbing from a low of 1.0968 and reaching a high of 1.0997 so far on Tuesday. The price is being resisted on an hourly basis around 1.1000 for the start of the week while trapped between there and support near 1.0950. The main focus is on the Ukraine crisis and forthcoming peace talks that start up again today. 

Ukraine peace talks in focus

There was a light of hope cast over Wall Street on Monday when news in an article in the Financial Times reported that Russia was no longer demanding that Ukraine be ‘denazified’ in ceasefire talks. Additionally, the article stated that Russia will allow Kyiv to join the EU if it abandons Nato aspirations. It went on to say that Moscow & Kyiv will discuss a pause in hostilities at talks in Turkey on Tuesday and draft documents do not contain three of Russia’s initial core demands — “denazification”, “demilitarisation”, and legal protection for the Russian language in Ukraine, sources told the FT.

Meanwhile, a slightly positive mood has crept into Asian markets as well, despite the mixed sentiment. Asian equities climbed, buoyed by a drop in oil prices as well as the glimmer of hope in the ceasefire talks.  Following a rebound and rally of the S&P 500for a third day, equities in Japan, Hong Kong, and China climbed. As for yield, the US 10-year treasury yield is stuck around 2.46%. However, the inversions in the bond curve are noted that signal the worries over a recession looming at the same time that the  Federal Reserve is on a path of raising interest rates sharply. 

EUR/USD technical analysis

As illustrated on the hourly chart above, the price is trapped between support and resistance with a focus on the downside below the countertrendline.