Feb 14 (Reuters) - EUR/USD struck a 14-session high and neared January's monthly peak Friday, and confidence is growing among bulls on the prospect for peace talks on Ukraine, converging expectations for central bank monetary policy and technicals.

The U.S. appears to applying more pressure towards reaching a peace agreement to end the Russia-Ukraine war, which has underpinned the euro.

The U.S. interest rate complex US10YT=RRUS2YT=RR and the dollar extended their recent drops after U.S. January retail sales shocked investors with a big downside miss. The retail control data, which factors into GDP calculations, had a big influence on yields and the dollar as it came in at -0.8% versus estimates for +0.3%.

The dollar's yield advantage over the euro was reduced. German-U.S. 2-year yield spreads US2DE2=RR tightened while terminal rate spreads for the Fed SRAM26 and ECB FEIZ5 narrowed as investors priced in the possibility of monetary policy convergence.

EUR/USD's rally helped to reinforce technical signals, which were already highlighting upside risks.

The 5-day moving average crossed above the rising 21-day moving average while monthly and daily RSIs continued to rise, implying upward momentum remains in place.

A massive monthly bull hammer has formed after the move below the 61.8% Fibo retracement of the 0.9528-1.1276 rally reversed course.

January's monthly high and the 1.0615/30 zone are impediments for EUR/USD bulls.

Should geopolitics, data and techs hold the current track those impediments could break and shorts may get squeezed hard.

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(Christopher Romano is a Reuters market analyst. The views expressed are his own)

((christopher.romano@thomsonreuters.com;))