General overview for 18/08/2014:
The lack of the impulsive wave progression to the upside is the first clue, that the downside wave development might not be finished yet, otherwise the market would trade on much higher levels than it is now.
The main count on H1 time frame looks like a classic complex corrective structure pattern with the last cycle in wave Y brown completing right now ( or already done). This is VERY BEARISH count that indicated the top for wave 2 of 3 is completed and the market should move sharply lower soon.
It is rather hard to say what level invalidates the counts but any breakout higher above the level of 1.3432 is bullish.
1.3294 – Technical Support
1.3308 – WS2
1.3332 – 1.3340 – DEMAND ZONE
1.3352 – WS1
1.3383 – Weekly Pivot
1.3431 – WR1
1.3462 – WR2
Beware of a short squeeze as a start of a corrective bounce!