If that was supposed to be a link to your circuit, please try again it does not operate as you posted it.
I suggest that rather than looking at that website you study it.
Try to get a small example program working that does nothing but go to sleep and wake up on response to, say, the press of a button.
Hint: you can practically cut and paste such an example from the website.
Then in your program, decide why and when you want to go to sleep, use the same code you have familiarized yourself with, just transplanted.
Wake it up with a pushbutton. When that works, and after you have played with the touch sensor in a similar fashion, wake up your program with the touch sensor.
Worry about powering up and down the servo last, there is circuit on that page and an explanation of how it works and how to wire it to your Arduino.
It may sound like work. For a good reason. But if you break the project into sections and get each part working independently, you will have less trouble combining them.
sleeping
waking up by pushbutton
responding to touch
waking up to touch
powering up and down the servo
Give it a shot and when you have problems with something you have tried which you think should have worked but did not, post the code and the circuit and we can help.
What Arduino board are you using? Some boards are tots inappropriate, others may need modifications for the soundest sleep to be realized.
a7