Trading ranges show the highest and lowest closing price that a currency pair has traded within a specific time frame.

The difference between the highest and lowest price is the "range".​​

Trading ranges are used as a technical indicator by traders who view the high and low as important support and resistance levels to closely monitor.

For example, as a currency pair trades within its  1-year trading range (the range that exists between the 1-year high and the 1-year low), traders may show increased interest as price nears either the high or the low. 

If price is near its 1 -year LOW, traders may look to go long if they think the low will hold as a support level. If the currency pair continues to fall though and creates a new low, breakout traders may look to go short since the previous low failed to hold as a support level.

If price is near its 1-year HIGH, traders may look to go short if they think the high will hold as a resistance level. If the currency pair continues to rise though and creates a new high, breakout traders may look to go long since the previous high failed to hold as a resistance level.