Support & Resistance
January 25, 2010
FX Monte
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Chart Analysis
We can see in this charting clip that there was a small amount of support that became resistance. Traders have to be able to anticipate any support or resistance area can hold the market and send it the opposite direction.
A good way to anticipate areas of support and resistance is draw a line out from them and watch the markets reaction to that area.
Analysis
What is the best way to utilize support and resistance when trading? It seems that the best method may be to look for support to become resistance in a downtrend. Also a great method would be is to look for resistance to become support in an uptrend.
It seems that this is method is not only the most reliable but also the easiest format to recognize on the charts. Recognition is something that must be considered because no matter how wonderful a strategy or method may seem, you must be able to know when it happens.
Market Forecast
25 MON
January 2010
| EUR/UD | GBP/USD | USD/JPY | USD/CHF | USD/CAD | AUD/USD | NZS/USD | |
|---|---|---|---|---|---|---|---|
| Resistance 3 | 1.4578 | 1.6515 | 92.66 | 1.0507 | 1.0745 | .9320 | .7443 |
| Resistance 2 | 1.4555 | 1.6476 | 92.42 | 1.0503 | 1.0697 | .9278 | .7408 |
| Resistance 1 | 1.4413 | 1.6457 | 92.03 | 1.0497 | 1.0576 | .9253 | .7398 |
| Current Price | 1.4150 | 1.6289 | 91.37 | 1.0442 | 1.0484 | .9137 | .7221 |
| Support 1 | 1.4084 | 1.6210 | 90.78 | 1.0229 | 1.0244 | .9122 | .7193 |
| Support 2 | 1.4068 | 1.6062 | 90.30 | 1.0168 | 1.0239 | .9097 | .7143 |
| Support 3 | 1.4045 | 1.5915 | 90.23 | 1.0137 | 1.0223 | .9091 | .7069 |
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