The USD index is trading lower from recent highs, which now appear to be start of a deeper corrective retracement. We are tracking the wave 4) pullback now, as we can already count a completed five sub-waves in red wave 3). As such, current bearish waves are only temporary, and should prove corrective.

Ideally we should see three sub-waves down in the wave 4 to 83.30-83.50 area where the market may find a support; around former wave four, 38.2% Fibo level and at base channel.

Forex Analysis by Gregor Horvat at ForexPros. com