FX.co ★ AUD/USD extends gains

AUD/USD has jumped above the descending trend line and now it should continue to move higher. I've told you in a previous analysis that an upside breakout from the triangle pattern will suggest buying as the pair will rise further.

The US dollar depreciates as the US Dollar Index has dropped in the short-term. More stimulus measures could be announced by the Federal Reserve, so USD could continue to drop versus other major currencies.

• AUD/USD Trading Tips

The breakout signals further gains, so you still have a chance to catch the current upside momentum. The first upside target is seen at the 0.7404 former high. AUD/USD could register a broader upside movement if it passes above this obstacle.