EUR/USD 1H Analysis – Bullish Breakout or Liquidity Sweep?EUR/USDOANDA:EURUSDForex_Market_InsightsEUR/USD is currently trading at a decisive area where multiple Smart Money Concept (SMC) confluences are aligned. Price has recently reclaimed bullish momentum after printing a Market Structure Shift (MSS), indicating that sellers are gradually losing control. The pair is now approaching a key confluence consisting of a descending trendline, a previous Order Block (OB), and a significant resistance level. This area will determine whether the market continues its bullish expansion or performs a final liquidity sweep before reversing. The recent rally from the Major Support Zone confirms that buyers remain active at discounted prices. Every rejection from this demand area has resulted in strong bullish impulses, suggesting institutional accumulation. The higher lows formed during the recovery further strengthen the bullish market structure and indicate increasing buying pressure. At the same time, price is testing the descending trendline that has acted as dynamic resistance over the past several sessions. A decisive candle close above this trendline would invalidate the short-term bearish structure and confirm a breakout. Such a move would likely attract momentum buyers while forcing short sellers to exit their positions, adding fuel to the upside. Above the current price lies the Buy-Side Liquidity resting beneath the Major Order Block & Resistance Zone. This is the most attractive objective for institutional traders because liquidity typically accumulates above previous swing highs. The projected bullish path on the chart suggests that price may first sweep this liquidity before making its next significant directional move. However, the marked arrows also highlight an alternative scenario. After collecting Buy-Side Liquidity, EUR/USD could experience a sharp rejection from the Major Order Block. If sellers regain control in that premium pricing area, the market may reverse aggressively toward the Major Support Zone. A confirmed breakdown below this support would expose the Strong Fair Value Gap (FVG) beneath, where unfilled imbalance could attract price for mitigation before buyers attempt another recovery. The Strong Fair Value Gap represents a major higher-timeframe demand zone and is likely to become the next institutional reaction area if bearish momentum accelerates. As long as price remains above this imbalance, the broader market structure still favors recovery after any corrective decline. Overall, the chart presents a classic Smart Money setup. The recent Market Structure Shift, bullish reaction from the support zone, and compression beneath trendline resistance all suggest increasing bullish pressure. The most probable near-term path is a breakout toward the Buy-Side Liquidity and the Major Order Block & Resistance Zone. Once liquidity above the highs has been collected, traders should closely monitor price action for either continued bullish expansion or a strong bearish rejection, as both scenarios are clearly supported by the liquidity map and institutional levels marked on the chart.