Let me explain the meaning of "resistance" and "support."
Imagine that a currency price is like an elevator moving inside a building:
1. Resistance = Ceiling
Every time the elevator ascends, it reaches a certain floor (high price). It finds the door closed, preventing it from going any further, so it goes back down.
This means that the price tried to rise further, but encountered resistance and fell back down.
2. Support = Floor
When an elevator descends, it reaches a certain floor (low price). It encounters a strong floor, which stops it from descending, and it begins to rise again.
This means that the price fell, but found support and rose again.
Why should I know them?
If you want to buy: Buy at support (low price).
If you want to sell: Sell at resistance (high price).
And if the price breaks support or resistance, we might see a strong movement (a significant rise or a significant fall).