On 14th Oct 2016, Euro fell relentlessly and even broke below the support level $1.1004. This pair is still very much bearish and could be very dangerous for buying. Thus, we choose to sit on the fence and only hunt for potential sell signals. This downward rally is highly likely since the other negatively correlated pair, usd/jpy is pretty much bullish and will likely head to the upper side during this intraday. As long as USD/JPY and USD/CHF remain bullish, we choose to remain short in Euro, these pairs have a strong negative correlation of up to -86% and will have an exact opposite price action during this intraday.
Margin Trading in the Forex market contains risks and can cause in significant financial losses. Before deciding to trade in the foreign exchange market, make sure that you understand the risks according to your financial experience and knowledge.