FxWirePro: AUD/USD extends gains on broad-based US dollar weakness and improved market sentiment

AUD/USD chart - Trading View 

AUD/USD was trading 1.63% higher at 0.5920 at around 05:15 GMT after closing 0.32% higher in the previous session.

The pair has bounced off 88.6% Fib at 0.55 handle and is extending gains for the 3rd straight session.

Broad-based US dollar weakness is helping the pair upside. Greenback offered possibly in response to the Federal Reserve's unlimited QE commitment.

The Aussie dollar is also gathering pace amid improved market sentiment as the RBA is also injecting liquidity to stabilize markets.

'Spinning Top' and 'Bullish Divergence' raise scope for upside in the pair. Stochs and RSI are on verge of rollover into neutral.

Price action is holding above 5-DMA and intraday bias has turned neutral. Breakout above 200H SMA could reinforce upside in the pair.

Next major resistance above 200H SMA lies at 21-EMA at 0.6212. Retrace below 5-DMA negates any upside bias.