The bullish bias was quickly reversed when the price fell below the 1.2282 level and then the 1.2257-61 area (100 and 200 hour MA levels). The subsequent fall in the pair extended the days range to 94 pips but keeps the price firmly in the narrow 147 pip range for the week (low at 1.21746). This is still too narrow but to extend there are more levels to get through and those levels are hard when the market traders are nervous about rebounds.
If the market is going to make a run at the lows, traders should now look for corrections to hold against the 1.2262-64 area (100 and 200 hour MA and 38.2% of the days range). The next key target below comes in at the 1.2216 level which is the trend line support line from the lows on July 13th, 16th and 17th. If the price is going to go lower, this trend line needs to be breached. I would expect the next stops to be triggered on a move below this level (with buyers on the 1st test).
With a non trending range, traders get used to buying support and reversing, selling resistance and reversing. That is what we have seen this week. However, from a non trend, a trend develops. So traders who have good trade location (say those who sold 1.2282 or 1.2262s) can use the profit as an investment in a potential trend like move. It may cost the profit to the trader but should a trend move develop, the investment can be worth the investment.