Waiting for a correction here and will take 2 long positions on a break out. will update with targets if position taken.
waves 1 3 ad 5 are close to equal length mean there was no extended wave which would be rare. In the corrections we have wave 2 as a zig zag and wave 4 as a flat so meets requirements of alternate corrections. Looks like a breakout so entry on a correction could be a idea
in theory it's the same shape and appearance as the diagonal you posted. It just signals a wave 1, with a short wave 2 up to follow before the wave 3 down. It looks the same as an ending diagonal at the top of a trend, but appears in wave 1 instead. aud/usd is falling now without a pop up, so perhaps it wasn't a diagonal at all despite the appearance.
Perhaps this is 5 of the diagonal..........I don't disagree with your idea that it could go up to a new high. I just think that in a majority of cases where a down-pointing diagonal appears at the top of a trend, it's a leading diagonal......the price action will tell us