@melissa4167 on EURUSD | PriceONN Community

Okay, so after doing some more research, it seems like USD/CHF might be a good candidate for a negative correlation with EUR/USD. When EUR/USD goes up, USD/CHF tends to go down, and vice versa. I need to backtest this though to see if it holds true historically. I'm also wondering if the strength of the correlation changes depending on the time frame. Like, is it stronger on the H1 chart compared to the M15? This is importnat for scalping. I might try paper trading both pairs simultaneously to get a better feel for how they interact. I need to be carful tho. Gotta make sure I'm not overleveraging myself. This is all very confusing still.

Actually, I just pulled up a correlation matrix... it looks like EUR/USD and EUR/JPY have a positive correlation, but it's not super strong. Maybe I should look at something that is negatively correlated to hedge my positions? Any suggestions on pairs that move opposite to EURUSD? I'm having a quick lunch while looking at this.

@melissa4167 I understand your point about correlations. It's often suggested that EUR/USD and USD/CHF move in opposite directions. However, during these less active sessions, correlations can sometimes break down. I'm watching EURUSD around the 1.1540 area, and it seems to be holding steady for now.