FxWirePro: AUD/USD capped at 5-DMA, Australia's stimulus announcement fails to impress Aussie bulls

AUD/USD chart - Trading View 

AUD/USD was trading 0.72% lower on the day at 0.5765 at around 04:40 GMT.

Aussie bulls largely unimpressed by Australia's additional stimulus announcement earlier today.

Australia's government on Monday announced a second major economic rescue package worth $66 billion, on top of an initial $17.6 billion package.

More than $100 billion was added in emergency banking measures to prevent against a credit freeze.

Risk aversion continues to drive markets and expectation that the coronavirus pandemic is likely to have a fierce impact going forward keeps markets subdued.

Technicals show little respite for the pair despite oscillators at highly oversold levels.

Major trend for the pair is bearish, while minor upticks likely amid oversold conditions. Bullish Stochastics divergence and spinning top keep scope for upside. 

5-DMA is immediate resistance at 0.5815. Break above eyes 200H SMA at 0.6094 ahead of 21-EMA at 0.6238.

Strong support on the downside lies at 0.55 (88.6% Fib). Break below will open downside for the pair.

Support levels - 0.55 (88.6% Fib), 0.5229 (Aug 2002 low)

Resistance levels - 0.5815 (5-DMA), 0.6094 (200H SMA)