Support and Resistance

Trading with Support and Resistance

From a strategic point of view, support and resistance levels represent smart places to anticipate a reaction in the price of an asset, and therefore represent a basic tool in technical analysis.

Numerous traders use them, but the diversity in application and integration of support and resistance analysis tell us that charting is definitely not an exact science and more of an art.

One of the most common mistakes that new traders make is buying too close to a line of resistance or selling too close to a line of support. In this page we provide enough set-ups and real time examples, to make sure you thoroughly understand this simple yet important dynamic.

Support and Resistance in EUR-based pairs

EURUSD suport resistance

USDX suport resistance

Now or never on the EURUSD

EUR/USD is having a now or never moment on the long term chart. We are on a very important support and it seems that it is the last chance for buyers to initiate a correction. This support is created by lows from April and December 2015 and looks like a very important stronghold here.

EURUSD suport resistance

Identifying Supply and Demand

There where the difference between the number of buyers and sellers get more remarkable, it tends to form a Support or Resistance level. Your next logical quest will be to identify them on a price chart.

Historical and potential Support and Resistance levels, can lead to several constructs: horizontal lines and dynamic trendlines are the most used ones and can be based on significant highs and lows. Lines are also used to delineate price channels as well as classical chart figures such as triangles and wedges.

Some technical indicators can act as potential Support and Resistance levels, such as moving averages, Pivot Points and Fibonacci extensions and retracements which are commonly used in Elliott Wave analysis.

Round numbers - those quotes ending in 00 or 50- and emotional spikes are often perceived as Support and Resistance levels.

When these levels encompass a larger area on the charts technicians speak of a Support and Resistance Zone.

JPY-related Support and Resistance

GBPJPY suport resistance

Currency spotlight – USDJPY

Dollar strength from the skyrocketing US rate hike expectations could be the engine which drives the USDJPY to levels not seen since February 2016 above 115.00. A sharp breakout above 113.00 could spark a further incline towards 115.00 in the coming weeks.

USDJPY suport resistance

Is the USDJPY About to Tumble?

Key Points: USD/JPY rallies due to an uptick in US Bond Yields. Pair reaching a key reversal point. Watch for a break of 106.20 to confirm a bearish bias. [...] the USDJPY has rallied strongly and is nearing a challenge of the 107.00 handle. However, there are some concerning technical signals starting to appear which could see the pair tumble in the coming days.

USDJPY suport resistance

GBP-based pairs Support and Resistance

gbp/usd supply and demand

GBPUSD suport resistance

USDJPY suport resistance

Support and Resistance in related markets

Brent: after the decision of OPEC

As a result of yesterday's strong growth in the price rebounded from the key support level of 47.25 (EMA200 on the daily chart), breaking the resistance level of 48.20 (EMA50 daily chart). However, the absolute annual and October highs near the mark of 53.70 achieved yet were not.

oil suport resistance

AUD suport resistance

WTI suport resistance

Streaming Live Rates and Pivot Points

Educational Resources