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first of all, there is nothing wrong in a currency-only portfolio to be dollar long and short the cross currencies. If that is what your model predicts and if you have a high confidence in the predictions and standard error being low then why do you have issues being dollar long and short the other currencies? You can implement boundary conditions, such as ...

A partial answer… For Black-Litterman, an equilibrium no arbitrage condition such as interest rate parity suggests investors would be indifferent between investing in either the foreign or domestic currency. Thus, you could use a constant zero return for all currencies in your opportunity set as the equilibrium model. What this ultimately would do is act ...