USD Rebound Expected to Lose Momentum Despite Recent Gains

Despite the US dollar index climbing 0.4% to 101.75, analysts suggest the current rebound lacks sustainable momentum. EUR/USD has pulled back to 1.1125 from recent highs, while USD/JPY trades at 144.30, but underlying fundamentals point to limited upside for the greenback. The Fed's dovish pivot remains intact with markets still pricing in 75 basis points of cuts by year-end, despite recent strong data. European and Japanese economic indicators show improvement, potentially limiting dollar strength against major peers. Technical patterns suggest the dollar index faces strong resistance at 102.20, with failure to break above likely triggering renewed selling pressure. EUR/USD maintains bullish structure above 1.1100 support, targeting 1.1200 on any dollar weakness. Traders should view current dollar strength as a correction within a broader downtrend, with selling opportunities emerging near resistance levels across major pairs.