At last, EURUSD broke out from the range this week. As I stated in my previous squawks, market was preparing for a long time for this rally. But according to my setup, there is still some space up for the future moves. I calculate upper limits (for February) around 1.1850-1.1900.
Additionally USDJPY still stays above 1.116 and S&P500 has not started it's downtrend yet. These two factors(if happen) may speed up rise of EURUSD.
Also fundamentally there are a few issues which do not support bullish USD:
1. There is a lot of carry trade in US stocks. Position unwind would favor JPY & EUR.
2. Not many tools left for CBs. Besides, any new measures are believed to have small impact on real economy.
3. Possible reversal of US rate hike path. Wage rise in January is not enough for change in negative outlook.
4. Bubble on USD got to burst sooner or later. Risk of pushing the price to parity(EURUSD) or 1.130(USDJPY) is too high.