The EUR/USD currency pair is close to 0.9900 in European trade. Putin’s military threat makes people worry about world politics. Risk aversion strengthens the US dollar. the Fed.

After the recent drop, the four-hour Relative Strength Index (RSI) fell below 30, which means that the market is oversold.

Before 0.9880 (a static level) and 0.9865 (a psychological level), 0.9900 is a level of support (September 6 low).

Putin announced a partial military mobilisation and said that Russia is ready to protect its sovereignty, saying that the West is trying to take it away. In a televised speech to the country, Putin said, “We have a lot of weapons to fight back.”

People ran away to safer places, which made the dollar more robust against the common currency.
Vice President of the European Central Bank Luis de Guindos said that interest rates would continue to go up, but the size of the increases will depend on the data. De Guindos said that the exchange rate for the euro is a crucial factor. Even though this comment kept the shared currency from falling further, investors are still hesitant to count on long-term recovery in the current market.

Later today, the Federal Reserve will say what its monetary policy is. The Fed is expected to raise rates by 75 basis points (bps) (bps). In the late American session, the revised Summary of Projections from the FOMC may be more important than the rate decision.

Conclusion

Even though the pair has been sold too much, international tensions could stop it from returning.