The highlighted bars are indications of major weakness and they come at a level established for a couple months to be a strong resistance level. I would suspect that the market will rebound up temporarily, at least up to 1.3170 before any further down move is possible.
Remember this is short term, this downtrend will not be absorbed by the current stalling action but it will definitely delay it.
Notice the high volume on the highlighted bar closest to the right-hand side of the screen - this coupled with the close being almost in the middle of the bar means there was a significant amount of hidden buying. The 'smart money' (large institutional players) in the market hide there activity with hidden buying and selling.
DO NOT sell before a small move up.
The resistance created in the highlighted area from January must be broken before any further downmove can resume and the current bar configuration, namely the large volume and hidden buying in the bars depicted above, tells us there are not enough sellers present to push below the current level. BUY - temporarily.
