Support is a price level where an asset tends to stop falling due to increased buying interest. Resistance is a price level where an asset tends to stop rising due to selling pressure.
These levels help traders determine potential entry and exit points, as well as identify key market zones where price reactions are likely.
For instance, if EUR/USD repeatedly bounces off 1.0900 (support) and struggles to break 1.1100 (resistance), traders may use these levels for buying and selling opportunities.
Test your knowledge of support and resistance in forex trading with the following questions:
