BUZZ-COMMENT-There are good reasons to be long USD in February

Feb 4 (Reuters) - FX traders expecting U.S. dollar gains this month can take comfort from seasonal trends, which are corroborated by technical factors. The market remains positioned for a rise.

An analysis of the dollar's February performance since 2000 shows it has risen in 16 of the past 25 years, including the last eight years in a row.

The USD index, which tracks the greenback against a basket of six major currencies, failed in recent weeks to hold the break under the 107.805 Fibo, a 23.6% retrace of the 100.150 to 110.170 (September to January) rise. That is a likely bear trap, set when a market breaks below a technical level but subsequently reverses, which is usually a bullish sign. Especially as the 14-week momentum reading is positive.

The speculative long position - derived from net contracts of International Monetary Market speculators in the euro, yen, pound, Swiss franc, Canadian and Australian dollars - remains steadfast. For the week ending Jan. 28, the value of net positions held by speculators edged higher to $31.13 billion long from $30.73 billion a week earlier.

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