EUR/USD - Small ending diagonal could be forming

The correction from 118.75 is still ongoing. We have seen a rally deeper into my target-zone between 126-127. It's clear that momentum is fading and we could be seeing a ending diagonal developing. If this is the case we need one more rally closer to the 127 area, before turning down.

Short term we will problaby see a minor decline towards 126.04 from where the last leg up will commerce. This last leg can't be longer than wave (iii), which was 135 pips, that means if wave (iv) ends at 126.04 the wave (v) can't exceed 127.39. (see the close-up below)

A directe break below 125.52 would eleminate the ending diagonal count and confirm that a top was already found at the 126.87 high.

When the A-B-C correction is done a new impulsive decline to 114.71 should be seen.