EURUSD has broken above its descending trendline with a decisive bullish move, signaling a clear improvement in the short-term structure. After printing a fresh high, price is now pulling back into a former resistance area that may turn into support and provide the foundation for the next leg higher.

If buyers defend this zone and price shows a strong bullish reaction, I expect the rally to continue toward 1.1600, a reasonable target based on the current momentum and market structure. However, a decisive break below support would weaken the bullish outlook and suggest that the breakout is losing credibility. For now, the reaction around this retest zone remains the key signal to watch.

Before considering long positions, traders may look for confirmation such as a bullish engulfing candle, a strong rejection wick from support, or a noticeable increase in buying volume.

This is only my personal view based on price action, not financial advice. Always confirm your setup and trade with proper risk management.