Here is a follow up chart of the CAD, you can see the market remembers
support and resistance, and sold the dollar at the previous break...
Gab, your correct, if you see a strong area of support - buy, area of resistance - sell. It's not an exact science but identifying these areas is a start.
Pivot points are another good way to illustrate support/resistance too. Take a look at the EUR/USD pivot charts here. You can see the moves will sometimes stop at exactly the pivot support/resistance levels.
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