Support and resistance

Both support and resistance are drawn by linking the price levels through which a currency falls or surpasses. Usually, when the support or resistance level is broken, its role is reversed.

The support line is determined by a value below which the price cannot usually fall. It is seen as a level at which the traders are willing to buy. If the price falls below the support value, it will afterward be tested. The support may be confirmed if the price comes back on up or tested if the level can be broken, turning into resistance.