EUR/USD just completed a leading diagonal at 1.1185 and we should now see a corrective dip to 1.0950 before the next impulsive rally higher. Leading diagonals is the only impulsive five wave move that's consider to be an impulsive wave and it often is only recognized when wave three exceeds the peak of wave one and the reason is that it looks more like an correction than an impulsive. However, the internal sub-waves can help figuring out what we have seen and in this case, we see them as five waves sub-waves adding up to wave 1 and wave 2 will ideally move close to the 61.8% corrective target at 1.0950 before a strong rally in wave 3 is seen through resistance at 1.1495 towards our long-term target at 1.3993.
