FOREX-USD longs trimmed on doubts about U.S. recovery

* Dollar index holds above support at 85.09, looks vulnerable

* Dlr/yen near 1-mth low on doubts about U.S. recovery

* Euro, Aussie firm in Asian trade

By Anirban Nag

SYDNEY, June 28 (Reuters) - The dollar was subdued on Monday, with investors seeking to cut long positions built in favour of the greenback, while the euro held gains as the focus shifted to the sustainability of an U.S. recovery from the euro zone's woes.

The dollar index <.DXY> was at 85.30 in early Asian trade, holding above support at 85.09, the low hit on May 21. A sustained move below 85 for the index should see more losses with initial support seen near the 55-day moving average at 84.71.

The dollar was at 89.26 yen, not far from a one-month low of 89.21 hit on Friday. It lost 1.3 percent last week, the third straight week of declines and those losses came after data showed U.S. gross domestic product (GDP) growth was slower than previously expected in the first quarter.

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"The dollar index swooned in the face of all this news on Friday night," said Tom Lovell, economist at ICAP, Sydney. "I have a feeling in my bones that perhaps Friday was the start of the market questioning the viability of the U.S. dollar as the safe haven."

Latest data from the Commodity Futures Trading Commission showed currency speculators have trimmed their bets on the greenback and have gone long on the yen in the week to June 22. [IMM/FX].

The U.S. GDP numbers came after some weaker-than-expected housing numbers and a rather dovish Federal Reserve, all which drove U.S. Treasury yields lower and prompted investors to reassess their U.S. dollar positions.

The euro was up at $1.2383, having gained nearly 0.5 percent on Friday. And, while the dollar's drop was helping the euro, funding issues in the euro zone were likely to cap gains.

Near term resistance is at $1.2490, the high struck on June 21, with support forming around $1.2254, the low struck on June 25. Against the yen, the euro was firm at 110.55 yen, having gained 0.15 percent on Friday.

Traders said the impact from G-20 on the currency market was muted, with the summit throwing up no major surprises for investors. [ID:nN18322198].

The G-20 leaders agreed to take different paths to cut budget deficits and make their banking systems safer, serving a timely reminder to investors that global recovery would be uneven and bumpy.

Still, high-yielding currencies were well supported by improved risk appetite as commodities <.CRB> and stocks <.SPX> made gains.

The Australian dollar at $0.8740, having gained nearly 1 percent on Friday. Traders said there was talk of stops lined up above $0.8780 with resistance at $0.8788, the 55-day moving average. (Editing by Balazs Koranyi)