EUR/USD, H4 chart

Euro seems to have exhausted its downside potential. It did not fall last week despite news about higher-than-expected inflation in the US, but instead started to rise. And although the gains are still small, the decline has clearly halted.

Perhaps, the reason is the higher-than-expected inflation in Germany, which is setting traders up for another ECB rate hike after the one in March. That makes a further bounce upwards very likely.

Traders could try buying euro with a stop under last week's low.