There is much to be learned for those wishing to trade in the FX market. A good place to start your foreign exchange trading education is with the concepts of support and resistance.The concepts of support and resistance are truly two of the most highly discussed facets of technical analysis and are quite often regarded as complex by beginning traders.
Now when you look at this support line connecting the low price points, you can see how it tends to act as a floor, preventing prices from going below that level. Rather than break through this line, prices are more likely to bounce off the support level. But when the price finally does manage to break through the support level, it is likely to continue dropping until it reaches another support level.
One can view the resistance level as being the opposite of a support level. At this level, the price tends to find resistance as it climbs higher. And just as with support, price tends to bounce off this level rather than break through it. But once price manages to break through the resistance level, even by the smallest of amounts, it will more than likely continue rising until it finds another resistance level
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