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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 favor.

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).

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