In general, support and resistance are terms used by technical analysts to describe the price level on a chart that tends to act as an obstacle to thwarting the movement of the market in a particular direction. Support refers to a certain price level on the chart where the currency pair is falling touching resistance from the market. This happens because the number of traders who expect the price to stabilize or raise is greater at this level - so the pair is really "supported." Resistance refers to a certain price level on a chart where the currency pair rises struggling to increase the value. A number of traders who think that the market will not move above this level is greater, so the level of "resist" price further increases. This is an important factor to note that the concept of support and resistance is a matter of human psychology. They exist because traders in the market believe they exist; and act accordingly by sell near resistance and buy near support.