NZDUSD is creating a bullish star doji on Tuesday after it dropped to a new 22-month low of 0.6410 and if the price heads higher, it could confirm a positive move in the short-term timeframe.
However, the technical indicators are still suggesting a negative bias. The MACD oscillator is still strengthening its bearish move below its trigger and zero lines, while the RSI is standing in the oversold territory and is sloping down.
Should prices decline, immediate support could be found around 0.6370, an area which has provided as strong support in the past, taken from the trough on June 2020. Then a leg below that level, the pair could meet the 0.6175 barrier, achieved in April 2020.
However, if the market manages to pick up speed, the 0.6490 level could offer nearby resistance ahead of 0.6524. A significant close above the latter would break the 23.6% Fibonacci retracement level of the down leg from 0.7030 to 0.6410 at 0.6560 before jumping to 0.6590, raising chances for further increases. In this case, prices could climb towards the 38.2% Fibonacci of 0.6645.
In the medium-term, the outlook remains negative since prices hold below all the moving average lines and the bearish cross between the 20- and the 200-day SMA stays in place.
