The Euro broke down from a support trend formed after the oversold in November and has since rallied back to old support and is pausing, at least for the moment. Interestingly, we now have a positive divergence on RSI off the latest reaction low (RSI made a higher low while the EUR price made a lower low). A move back above old support (now resistance) would be a bullish sign. The top line (green) is more or less equivalent to the 100 DMA. A move above that level would be another bullish signal.
This could happen since the Fed´s hawkishness has certainly been absorbed in large measure by markets, not so much by the technocrats in Europe, where inflation is humming blithely along. One would expect at some point Lagarde will blink.
Remember this: Germans really hate inflation A LOT. The disaster of the Weimar Republic´s inflation was the economic ground cause of WWII. And that war was the social ground cause for the creation of the Eurozone in the first place, which, of course, led to the creation of the Euro currency itself. So the idea that Germany is going to ignore inflation is farfetched, to say the least.