On 6/11/14 USDCHF was trading just below the R1 resistance level at 0.9005 (top left of chart) during the Asia session. The pair continued to trade in a narrow range until 6/12/14 when price action met resistance at R1 again and then proceeded to move down to 0.8964, where support was found on 6/13/14 (as reference by the white dashed line). The move was roughly 40 pips.
From 6/13/14 to 6/16/14 the price shot up from support at 0.8964 on a near-90 degree trajectory back to R1 where it traded around for several hours leading into the Asia session on 6/16/14. That was another 40 pip move.
On 6/16/14 the USDCHF traded back down to 0.08964, where it held once again on 6/17/14. As the market continued to oscillate, it seemed reasonable to suspect another move up to 0.9005, which played out as advertised today.
The strategy of buying at support and selling at resistance would continue until prices break and hold above R1 or below 0.8964. If the market breaks below 0.8964, the next level of support would be set at 0.8945, or S1.The DailyFX Support and Resistance Wizard and Trading Sessions application can be found by clicking on the links or by going to www.fxcmapps.com to trade the strategy.