NZD/USD Eye Uptrend Resumption

The NZD/USD Forex Uptrend had broken and a break has been clearly visible in the recent past. There has been some major trend reversal behavior that is accompanied by buy and sell points which clearly reflect the new pattern of movement.

These two movements however are part of a long-term trend that stretches back since 2020 and started to significantly test the prior highs.

The up-trend in the price action is marked by the higher highs and lower lows that are characteristic of all other trends in the market. In addition, there has been a new entry point in the uptrend that is evident from the upper and lower boundaries of the channel. Furthermore, the full uptrend is being reinforced by both retracement resistance and support levels.

We must emphasize here that the retracement resistance is defined in terms of an upward path of a trading range while the support lies on a lower range that falls into a replacement channel. In addition, the resistance level on the uptrend remains at the low of the uptrend area while the support is found at the upper area of the uptrend. Thus, an uptrend is essentially marked by a break or back test of the previous high and a close of the channel.

The uptrend in the U.S. Dollar D.E.N.D.A. stands in contrast to the double top in the up-trend. In case of this uptrend, the prices are moving above the channel’s upper boundary on both sides. The range lines define the rejection points. Further, there has been no break on the upper boundary of the channel during the trend until now.

Both support and resistance breakpoints have been passed but the channel has not yet closed. Meanwhile, the price is seemingly refusing to break through the channel walls. All the better for the trader who has taken the opportunity to get in at the bottom of the channel.

He should be sure to concentrate on a specific trade and not to try to anticipate changes in the direction of the current uptrend. These are called percolation moves. They are completely random and may often produce undesirable results.

As a matter of fact, these percolation moves are likely to be a major factor in deciding the future direction of the uptrend. Therefore, the trader should focus on a specific trade and not on its general direction. This is a psychological factor that should not be underestimated.

One should use stock market charts to evaluate the uptrends and downtrends. He must also know about the analysis of the chart and the associated price action.

A reversal in the uptrend could lead to a bullish reversal for the shares in question. Likewise, a bearish reversal could produce a retrogressive pattern. A deviation from the previous uptrend can give rise to a candlestick pattern.

The breakpoint pattern can be recognized as the point in the price action at which the existing uptrend and the current downtrend meet. The technical chartists often recognize this as the start of a new trading range. It might just appear as a break in a long-term uptrend.

The uptrend may be in continuation mode and the closing range is usually the lower horizontal channel. Thefalling channel is often used to denote the closing range of the downtrend. The uptrend then resumes when the final resistance level is reached.

The downtrend has ended in the case of the uptrend. However, it is true that the uptrend has been verified as well. and therefore the uptrend is a confirmed trend.