If you have read the previous analysis, you can see that the price has reached the mentioned levels.
The price bounced back up to 1.32077, where the confluence of resistance previously was. From there, it fell to 1.30968, indicating that the level is broken. The analysis indicated that the price would continue to move down.
The following two days, the price formed two bearish candles and reached a demand zone close to 1.29795, the final target from the previous week's analysis.
The price had larger upper wicks on those two bearish candles, indicating that the demand zone close to the 1.29795 support level has the strength to hold the price above.
Nothing strange because 1.29795 was the historical support level that kept the price falling.
The price could make a retrace back up to 1.30968 and 1.32077 or at least close to 1.32077. The reason for the strong support of where the price currently is, is because the area around 1.32077 is a confluence of resistance.
We can see a downtrend line representing resistance for the price, and the 1.32077 was a strong support when the price was falling in the past.
We could wait until the price reaches 1.30968 and look for bearish signals from there. If the price forms a bearish price action signal, it would indicate the price has found strong resistance and could continue moving down to 1.28803.
Stop loss would be above 1.32077, which was hard to reach for the price in bullish moves. So this time could be the same case, and the price could find it hard to reach, making it an excellent price to stop loss.
Because of the bad situation in Europe, there is less potential to see the price on higher levels. 1.28803 is more likely as a target in the following week.
Frano is an engineer, author, forex trader and the owner of a blog where he teaches forex courses for beginners. Frano created a website on how to trade forex to share his knowledge, market analysis which is also published on forexFactory.com, investing.com and many other trading related websites.