EURUSD Dec 17 to Dec 21 Outlook

Recap
What I said last week,
“However, this is a pullback in terms of the daily uptrend just established last 2 weeks. Until we get more evidence that euro has failed to go higher, like a weekly reversal, will be careful with short.”
The rally was not traditional but the higher timeframe uptrend tells us a retest of Y+1 is more likely than not. Never breached Y-1 from the start of the week and rally all the way to 1.31 and paused. Breakout at the end of the week to above Y+1. Closed the week near week high and above Y+1.

Outlook
Bears last chance to contain this rally. If euro cannot be capped below 1.32 an all out short squeeze may take this higher to 1.35 area quickly.

The strength in euro should continue into the holiday weeks. Y-0 / B-0 support is likely to hold up euro until after new year.