EURUSD has made a notable shift after breaking above the descending trendline that had controlled price for an extended period. Following the breakout, price is now pulling back toward the same area that previously acted as resistance and could now turn into new support.

If buyers continue to defend this retest zone and a clear bullish reaction appears, I expect EURUSD to resume its recovery toward 1.1700. This is a reasonable target now that the breakout has been confirmed and the structure above is beginning to offer more room for buyers.

The bullish scenario would weaken if price falls back below the breakout area and holds beneath the former trendline. For that reason, the reaction around the current retest zone will be the key factor in confirming the next move higher.

The breakout is already in place. Now buyers just need to prove that former resistance can truly become new support.