The downtrend which started on first of February 2013 seems to have stopped at 1.2740 level on 4th of April. The first reversal signal is the higher high. Even though the price made a high at 1.3120 it seems that the up move wasn’t strong enough to break 38.2 Fibonacci retrace level and now EURUSD sits 2 pips above 1.3050.
For the reversal to be confirmed it will be necessarily for the price to make another higher low. It can find support at 1.2970, 38.2 Fibonacci retrace of the up move, and might just consolidate over this level. Or it could find another good support area between 1.2880, key support level (which is also 61.8 retrace), and 1.2970, mentioned earlier.
If the price will go under 1.2880 then the main downtrend might just have another chance to continue. A rejection from any of this levels or areas would bring in more buyers for the Euro and the price might rally back up to 1.31