The price level in which a currency pair has difficulty trading above. At resistance, price action tends to stall before breaking above, or reverse in the opposite direction. |
In technical analysis, key support/resistance levels are used as buy and sell signals when markets are ranging. Generally, the strength of support & resistance levels are measured by how many times the price reaches a specific level, but fails to break through. Also should a level have been tested a number of times previously, traders will often watch for a breakout to come.
