There are 2 big levels here:

1.2655 (bottom of 1hr bucket)
1.2640 (intersection of diagonal trendline)

I went long at 1.2656 just in case 1.2640 didnt get hit. Because they were so close together, only 15 pips, it was worth risking the 15 pip drawdown just in case price wanted to go lower and try to grab bids at 1.2640.

If you look at the 1 min chart, you can see price making a jump when it finally hit the level. These kinds of little clues are the type of things I look for. I went long when I saw that, and only missed out on about 3 pips from the very low.

If the diagonal trendline was about 50 pips away, and price broke downside, I would have closed the first position for a tiny loss and waited for the bigger one to get hit. But in a case like this, it makes sense to hold onto the first one.

In regards to why this level was okay for me to fade, price has been crawling down at a slow pace all night, and 5, 15, hourlies are all cooked in terms of downside, and we havent seen any real sizeable retracements in the past few hours. Not to mention its just a big key area in general. If there is anywhere price is going to react, it was going to be around here.