Before the European market on Monday (February 24th), the AUD/USD rebounded after last week's losses and is currently trading around 0.6370.

The Reserve Bank of Australia announced last week that it will lower its official cash rate (OCR) by 25 basis points to 4.10%, marking the first rate cut in four years. Australian Federal Reserve President Michele Bullock acknowledges the impact of high interest rates on the economy, but also warns that it is too early to declare inflation under control. Brock also emphasized the strong performance of the labor market and made it clear that despite widespread market expectations, there is still uncertainty about whether interest rate cuts will continue in the future. This policy statement has had an impact on market sentiment and further strengthened the market's cautious sentiment towards the trend of the Australian dollar.

Technical analyst interpretation:

From a technical perspective, the Australian dollar/US dollar is currently in an upward trend, and market sentiment tends to be bullish. According to the 14 day Relative Strength Index (RSI) data, the current RSI remains above 50, indicating that the overall market sentiment is bullish, further supporting the upward prospects of the Australian dollar.

On the upside side, the Australian dollar/US dollar may face psychological resistance at the 0.6400 level, which is an important technical target for bulls. Once this level is surpassed, it may challenge the upper boundary of the upward channel, which is about 0.6430, and this will be a key area for bulls to further conquer.

On the downside side, the short-term support level for the AUD/USD is around the 9-day moving average (EMA) 0.6347, which provides a solid support for the current price. If the price falls and breaks through this support, the next support level will be around 0.6330 on the 14th EMA. The stronger support zone is located near the lower boundary of the ascending channel, approximately 0.6320. Once the price falls below this critical support zone, it may lead to further downside risks.

Based on the Bollinger Bands, the current price of AUD/USD is close to the upper limit of the Bollinger Bands, indicating that there may be some downward pressure in the short term. However, if the price can break through the upper band of the Bollinger Bands, it may push the price further higher and open up a new upward trend.

In terms of MACD indicator, the current DIFF line is above the DEA line, and both are above the zero axis, indicating strong buying momentum in the current market. This technical signal further supports the upward trend of AUD/USD, especially as market sentiment continues to lean towards positivity.

Overall, the technical performance of the Australian dollar/US dollar has shown some upward momentum, but it also faces key resistance and support level tests. Pay attention to whether the price has broken through the psychological resistance level of 0.6400 and whether it remains within the upward channel. If the price rebounds to around 0.6320 and remains stable, this may provide support for future upward movements.

Conclusion:

From a technical perspective, the current trend of AUD/USD is bullish and may challenge the key resistance level of 0.6400 in the short term. Once it breaks through this level, the Australian dollar may further rise, approaching the upper boundary of the upward channel of 0.6430. However, if the price falls back to around 0.6320, the market may usher in new support, but it may maintain the current upward trend.