European indices are more mixed on the day with the early gains dissipating as US futures are also tilting lower, following a big day of gains yesterday. S&P 500 futures are down 0.5% while Nasdaq futures are down 1.1%, chipping away slightly at some of the Wall Street rally in the day before. It is still early though and we have US Q2 GDP data to work with before the open later.

Meanwhile, Treasury yields are keeping higher after holding at a key level again as noted here. 10-year yields are up 5 bps to 2.78% with the high earlier hitting nearly 2.83% – being pushed back by the 100-day moving average.

As for the dollar, it is trading mostly lower – only being little changed against the euro. EUR/USD is sitting close to 1.0200 and is still holding within a consolidation range of sorts between 1.0100 and the 50.0 Fib retracement level at 1.0283.

Meanwhile, USD/JPY is keeping lower on the day despite higher yields as the pair is down 0.9% to 135.30 currently. The 135.00 level is the key support level to watch out for at the moment:

GBP/USD is keeping just a touch higher after yesterday’s break, with the high earlier touching 1.2191. The next key resistance region to watch will be the 1.2200 level for offers and the 50.0 Fib retracement level of the swing lower from last month at 1.2213:

Besides that, commodity currencies are holding light gains against the greenback with AUD/USD flirting with a push above 0.7000 at the moment. That remains a key psychological level for the pair and buyers are looking poised after the push above the 50.0 Fib retracement level at 0.6982 yesterday:

A firm break above the figure level will tee up a potential push towards the 61.8 Fib retracement level at 0.7053 with the 16 June high at 0.7069 also in focus.

Then we have USD/CAD, which is testing 1.2800 at the moment and threatening a steeper drop after a breach of support around 1.2815-20 in trading yesterday:

A drop below that will put into focus the 100-day moving average at 1.2773 as the next key support level.

The US Q2 GDP data could provide a catalyst for market moves and overall, it looks like the dollar is showing some vulnerabilities but there are key technical levels to work through for a further breakdown in the greenback.

So far, the immediate reaction post-FOMC is just carrying with the recent pullback in the dollar and there needs to be more to convince of a significant breakdown in the bigger trend.

This article was written by Justin Low at www.forexlive.com.