DislikedWouldn't taking a countertrend trade, in a falling market, constitute "catching falling knives"? So, if a currency recently broke one level going down, we would look to go long once it reaches the next (lower) area of support. Right?Ignored
DislikedWould you even consider this a valid S/R level... since it failed its only test?
All levels have the potential of failing. The level you showed did not fail at all - it only failed to hold as support. I would bet the level was established before the line first hit it on that chart, so it held once as support. When it did break, it retested the level twice and held as resistance.
DislikedThis area, back in time, has in fact been used as S/R but a bit lower