Forget slowing euro zone economic growth, Brexit and U.S.-EU trade issues.
In EUR/USD it's all about the Fed, for the moment, and the steady stream of dovish rhetoric that is fueling gains.
Fed speakers Bostic and Evans have followed up Powell's comments last week with more talk of patience, lifting the pair to a 2-1/2-month high.
The comments weakened U.S. interest rates across many maturities, leading to dollar sales against the majors and emerging markets.
Technicals highlight topside risks for EUR/USD.
RSIs are biased up, EUR/USD cleared the daily cloud top and a long lower wick has formed on January's candle.
EUR/USD bulls may now target October's 1.1629 high, followed by the 200-DMA, currently at 1.1632.
Although the dollar is the main catalyst for the move, EUR/USD bulls are likely to tread cautiously.
yield spreads still give the greenback a big yield advantage, which is likely to remain as U.S.-EU growth paths are not aligned.
Minutes of the ECB's December meeting are due Thursday and could reinforce Draghi's cautious tone during his last presser.
Further EUR/USD gains are likely to be a grind rather than a sprint.
chart: Click here