EUR/USD surges 1.5% from November lows on dollar weakness

EUR/USD has staged an impressive recovery, gaining 1.5% from its November 4th bottom to trade near 1.0580. The pair has broken above its daily descending channel, signaling a potential trend reversal following broad-based dollar weakness. ECB President Christine Lagarde's recent comments suggesting the central bank remains committed to fighting inflation have provided additional support to the euro. The V-shaped recovery pattern indicates strong buying interest at lower levels, with momentum indicators turning positive. Technical analysis shows the pair has cleared resistance at 1.0550, opening the path toward 1.0620 (38.2% Fibonacci retracement). Support is now established at 1.0530, coinciding with the broken channel resistance. The dollar index has retreated from recent highs as markets reassess Fed rate expectations. Traders should watch for consolidation above the breakout level before further upside attempts.