The U.S. dollar index has backed well down from the December high amid choppy trading conditions. Bulls still have the overall near-term technical advantage but price action the past few sessions has favored the bears. In fact, a minor bearish pennant or flag pattern may be forming on the daily bar chart. It’s very likely going to take a fresh geopolitical event to unnerve the marketplace and in turn give the greenback bulls a solid boost. Otherwise, look for more choppy and sideways trading in the USDX in the near term. Stay tuned!