EUR/USD, GBP/USD and AUD/USD regain ground on drug optimism
EUR/USD, GBP/USD and AUD/USD show signs of a potential resurgence following yesterday’s Gilead announcement.
EUR/USD falling back after overnight gains
EUR/USD gains appear to have been short-lived, with the pair heading lower again this morning. News of a potential breakthrough from US drugmaker Gilead has helped boost sentiment, yet that dollar weakness is fading as we enter the European session.
The downtrend in play since Tuesday's top points towards the potential for further short-term downside. However, with the possibility of that dollar weakness story coming back into play, a more bullish picture would come into play with a break through the $1.0901 level.
GBP/USD rises through key resistance
GBP/USD has managed to tentatively break through the $1.2516 resistance level overnight, with the price moving lower since. This could mark an end to the recent downside, as the haven dollar falls out of favour.
With that in mind, there is a good chance that the current move lower is a precursor to a rally in GBP/USD. Confirmation comes with a break through $1.2522.
AUD/USD leads the way higher
AUD/USD is ahead of the pack on the bullish side, with the pair rallying sharply on yesterday’s Gilead announcement.
The break through $0.6334 points towards a bullish phase coming into play, with the current pullback looking like a short-term retracement until we move higher again. As such, a bullish outlook is in play unless we see a break through the prior swing low (currently $0.6271).
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets