Analysis: Trading Range | EUR\AUD

Horizontal Channel chart pattern, also known as Trading Range, appeared at the EUR\AUD forex pair. This is a very strong pattern that is formed when price is bounded by two horizontal levels of Support and Resistance. This particular example is especially strong as it had over 8 touches at Support and Resistance, making its level very respected and confirmed. Pattern is 130 pips in size.

Trading
This is also one of the easiest patterns to trade.
Aggressive traders will take trades on the Support and Resistance levels themselves, confirming their trades with Candlestick Formations. Tight Stop Loss is essential for this kind of trading.
Conservative traders will wait for breakout of price to either direction, and will enter when price pulls back to the level it broken. After pullback a trade in the direction of pullback will be initiated, with Target set to 130 pips from breakout location.

Discussion
Have a question related to this chart pattern? Ask it here