Support is a level at which a falling currency pair encounters resistance from the market. This happens because the number of traders who expect the price to stabilize or rise is greater at this level. So, the pair is literally supported. Resistance is a level at which a rising currency pair struggles to increase further in value. The number of traders who believe that the pair will not cross this level is greater. So, the pair resists further price rises. Support and resistance levels are a matter of human psychology. They exist because the traders in the market believed them to exist and act accordingly by selling near resistance and buying near support.
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