• NZD/USD struggles to defend the week-start bounce off three-month low.
• Bullish candlestick formation, oversold RSI underpin recovery hopes.
• Three-week-old descending resistance line, previous support from November add to the upside filters.

NZD/USD seesaws around 0.6160-65 amid early Tuesday, following a week-start bounce off the lowest level since November.

In doing so, the Kiwi pair jostles with the 200-DMA hurdle after posting a bullish candlestick on the daily chart, namely the Dragonfly Doji.

Not only the upbeat candlestick formation but the oversold RSI (14) also suggests the NZD/USD pair’s upside past the immediate hurdle surrounding 0.6170.

The same highlights a downward-sloping resistance line from early February, around 0.6205 at the latest.

Following that, the 61.8% and 50% Fibonacci retracement levels of the pair’s run-up from late November 2022 to early February 2023, near 0.6245 and 0.6300 respectively, could challenge the NZD/USD buyers.

It’s worth noting that the previous support line from November 17, close to 0.6330 by the press time, acts as the last defense of the Kiwi bears.

Alternatively, a daily closing below the multi-day bottom marked on Monday, around 0.6130, will defy the bullish candlestick and can direct the NZD/USD sellers towards the mid-November swing low surrounding 0.6060.

It should, however, be observed that the Kiwi pair’s weakness past 0.6060 appears tough as multiple supports stand tall to challenge the sellers around the 0.6000 psychological manget.

NZD/USD: Daily chart

Trend: Limited recovery expected