ZeccoForexTrader. Online forex trading, investment & exchange. Forex Trading | Currency Trading | Forex | FX Club. World's Largest Online Social Trading & Investment Network | eToro. Support and Resistance | Support and Resistance Levels. Support and resistance is one of the most widely used concepts in forex trading. Strangely enough, everyone seems to have their own idea on how you should measure forex support and resistance. Let’s take a look at the basics first. Look at the diagram above. As you can see, this zigzag pattern is making its way up (bull market). When the forex market moves up and then pulls back, the highest point reached before it pulled back is now resistance. As the market continues up again, the lowest point reached before it started back is now support.
One thing to remember is that support and resistance levels are not exact numbers. Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it. Notice how the shadows of the candles tested the 1.4700 support level. So how do we truly know if support and resistance was broken? There is no definite answer to this question.