► Introduction

This article is a continuation to my previous article: "Finding Key Support and Resistance Areas". In this article I will demonstrate how to find key support and resistance areas quickly and easily. We will use the same method explained in the previous article. I have applied the method on all the Major Currencies: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and USD/CAD. I hope this article will help us understand the method better and observe how it can be used in live market charts.

Although the method is very technical, it does require some practice. I suggest that you first read again the previous article. Then, open the daily charts of the Majors and try to find the key support and resistance areas in them by yourself. Finally, you can compare your areas of support and resistance with my suggestions in this article. I think that this is a nice way to practice the method and gain the needed experience.

In each currency pair I will introduce three charts. The first chart is the daily chart. It is zoomed out to show at least one year of recent price movements. The second chart includes green v-shape and red upside-down-v-shape markings. They represent key support and resistance levels. The third chart includes horizontal key support and resistance areas. They are marked with green and red colors, respectively. I hope you will find this article helpful for your trading. :-)
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► EUR/USD Key Support And Resistance Areas

Let us start with the EUR/USD daily chart. The EUR/USD is the most traded pair. Price usually follows technical analysis' rules nicely. Therefore, it is not surprising that I have found seven key support and resistance areas! First, let's look at the EUR/USD daily chart, zoomed-out:


In the following chart, I've marked in green color the v-shape candle formations. These structures indicate key support areas. I've also marked in red color the upside-down-v-shape candle formations. They indicate key resistance areas:


Please note that some support areas are not marked, as they don't fit this method's rules. For example, there seems to be support around March 28th daily low. However, the formation resembles a u-shape. The bottom is rounded, because there are many candles at the bottom. We see a similar u-shape in the middle of May.

As I have explained in the previous article, we are looking for the key support and resistance areas. We want to see an impulsive move towards an area, a quick bounce off and then an impulsive move in the other direction. V-shapes and upside-down v-shapes hint on strong support and resistance at the edge of the formation. We are not interested in u-shapes and upside-down u-shapes. There are not a strong enough indication of support and resistance areas:


Here are all the key support and resistance areas. I have marked support with a green marker horizontally, across the whole chart. I have marked resistance with a red marker horizontally, across the whole chart. Please note the price confirmations around these areas. Places where price found support are marked with green arrows. Places where price met resistance are marked with red arrows:

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► USD/JPY Key Support And Resistance Areas

The next chart is the USD/JPY daily. This pair has been on strong bullish momentum in 2013. Price has traveled from 85.00 to the 105.00 area. In general, the overall move was upwards, with few price pullbacks. Therefore, there are not many key support and resistance areas. Here is the USD/JPY daily chart, zoomed-out:


In the following chart, I've marked in green color the v-shape candle formations, which suggest key support areas. Please note that the key support areas are located only in the middle of the chart. There are no key areas at the right of the chart, or at the left, as price there just moves upwards:


Please note that I have ignored the upside-down u-shape formation in the middle of May. There are multiple candles at the top of this formation. Therefore, it is not a valid key resistance area, according to the method's rules:



Here are the key support areas. I have marked support with a green marker horizontally, across the whole chart. Please note the price confirmations around these areas (green and red arrows):

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► GBP/USD Key Support And Resistance Areas

The GBP/USD Daily chart shows a round trip from 1.6400 area, all the way down to 1.4800, and then back to 1.6500. This has been a very interesting year for Cable fundamentally. Looking at the chart, we can easily see some strong trends with several temporary pullbacks:


In the following chart, I've marked in green color the v-shape candle formations, which suggest key support areas. I've also marked in red color the upside-down-v-shape candle formations, which suggest key resistance areas. I have spotted seven key supports and resistances:


Here are all the key support and resistance areas. I have marked support with a green marker horizontally, across the whole chart. I have marked resistance with a red marker horizontally, across the whole chart. Please note the price confirmations around these areas:

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► AUD/USD Key Support And Resistance Areas

The next pair is AUD/USD. Price in the daily chart clearly shows a collapse from 1.0600 to 0.8800 area. Please note that price moves sideways near the highs at the left of the chart. However, between May and July price just moved in one direction, downwards. Not surprisingly, there are no key support and resistance areas at that period:


In the following chart, I've marked in green color the v-shape candle formations, which suggest key support areas. I've also marked in red color the upside-down-v-shape candle formations, which suggest key resistance areas. Please notice that there are no key areas between May and July. All the key areas are either before May, or after July:


Here are all the key support and resistance areas. I have marked support with a green marker horizontally, across the whole chart. I have marked resistance with a red marker horizontally, across the whole chart. Please note the price confirmations around these areas:

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► USD/CHF Key Support And Resistance Areas

The USD/CHF daily chart has some wonderful examples of price going with a strong trend in one direction, and then completely reversing and moving in the opposite direction:


In the following chart, I've marked in green color the v-shape candle formations, which suggest key support areas. I've also marked in red color the upside-down-v-shape candle formations, which suggest key resistance areas:


Here are all the key support and resistance areas. I have marked support with a green marker horizontally, across the whole chart. I have marked resistance with a red marker horizontally, across the whole chart. Please note the price confirmations around these areas. It is interesting to note that the difference between the key areas is usually between 50 and 100 pips:


I think that some of the double-tops and triple-tops confirm the key resistance areas well. In a similar way, some triple-bottoms confirm key support areas well. Here are a few examples:

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► USD/CAD Key Support And Resistance Areas

The last pair we will review is USD/CAD. The daily chart clearly shows strong bullish momentum. Price climbed in the last year all the way from 0.9800 to 1.0740 area:


In the following chart, I've marked in green color the v-shape candle formations, which suggest key support areas:


Here are the key support areas. I have marked support with a green marker horizontally, across the whole chart. Please note the price confirmations around these areas:

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► Feedback And Comments Are Most Welcome!

I hope you have found this article useful for your trading! I suggest that you apply the method on your favorite currency pairs. If you like to trade any of the Majors and use the daily time-frame, please compare your key support and resistance areas with my findings. In any case, please share your results with the rest of us!

I would really appreciate any feedback or comment about this method. In my humble opinion, this method is very technical, easy to use and spots key support and resistance areas. What do you think? All feedback and comments are most welcome! Happy trading :-)
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