XE Market Analysis: Europe – Oct 29, 2015

The dollar is flying high in the wake of yesterday’s post-FOMC Fed statement, which has been generally accepted as leaving the possibility of a rate hike in December on the table (see report). The euro has been the principal victim, as the Fed’s guidance brings the monetary policy paths of the U.S. and Eurozone into sharp contrast. EUR-USD is trading in 14-month low territory on the low 1.09 after leaving a low at 1.0887. The July 2014 low at 1.0808 is in scope, while 1.0996-1.1000 now marks a resistance zone, as it encompasses last Friday’s and this Monday’s lows.