EURUSD stays below a downward trend line on 4-hour chart, and remains in downtrend from 1.4246 (Oct 27 high), the price action from 1.2946 is likely consolidation of the downtrend. As long as the trend line resistance holds, we'd expect downtrend to resume, and another fall towards 1.2500 is still possible. Initial support is at 1.2946, a breakdown below this level could signal resumption of downtrend.