Come, let me explain to you the meaning of "Resistance" and "Support"
Imagine that the price of a currency is like an elevator moving within a building:
1. Resistance = the ceiling
Every time the elevator goes up to a certain floor (high price), it finds the door closed and cannot go further up, so it goes back down.
This means: the price tried to go higher, but faced "Resistance" and came back down.
2. Support = the ground
And when the elevator goes down, it reaches a certain floor (low price), it finds the ground strong, stopping it from descending, and it starts to go up again.
This means: the price dropped, but found "Support" and rose again.
Why is it important for me to know them?
If you want to buy: buy at support (low price).
And if you want to sell: sell at resistance (high price).
And if the price breaks support or resistance? We might see strong movement (big rise or strong drop).