The EUR/USD daily candlestick has formed a bullish Harami. In a downtrend the bullish Harami signifies that the trend is coming to an end as selling appears to have been exhausted. Also a spining top has formed indicating little price action for the trading day. The Parabolic SAR has trigger a buy signal 2 days ago. But yesterday’s close for EUR/USD is
BELOW its 200 daily moving average
BELOW its 50 daily moving average
BELOW its 20 daily moving average
Making the current market condition for Euro Dollar / US Dollar is Very Bearish
On the hourly chart EUR/USD is still heading downwards with focus at fibonacci 261.80% retracement level at 1.26077 which could is a key retracement level. Look for reversal signal aroung this level. If EUR/USD could not hold at this level, EUR/USD will be heading back to test its previous low at 1.20044 formed on 23/07/2012.