May 24 (Reuters) - The dollar's overbought uptrend on rate-hike expectations is coming undone amid data suggesting the U.S. pandemic recovery may have peaked along with Fed tightening pricing, just as the ECB finally warms to ending over a decade of negative policy rates . The dollar index broke its post-FOMC meeting, prior May low and kijun supports at 102.34/41 Tuesday and is eyeing important support at 101.33-35. Treasury yields and Fed rate hike expectations tumbled after weaker-than-expected U.S. data , topped off by a 16.6% plunge in new home sales . The index's fall was mitigated somewhat by sterling's slide after a very weak UK PMI raised recession fears and slammed gilt yields, but tumbling Treasury yields versus more stable bund and JGB yields undermined the dollar. Two-year Treasury-Bund spreads have fallen from a 2.53% May highs to 2.116% currently, and 2-year Treasury spreads from 2.78% to 2.56%. A close below 101.34, the 38.2% Fibo of 2022's rally and weekly tenkan, would raise the risk of a 50% retracement to the kijun at 99.818. For more click on FXBUZ (Randolph Donney is a Reuters market analyst. The views expressed are his own.) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.