BUZZ-COMMENT-There is room for the dollar to climb

Feb 10 (Reuters) - The U.S. dollar could see a recovery as there has been reduction in the speculative long position providing room for the greenback to rise.

The speculative long position - derived from net contracts of International Monetary Market speculators in the euro, yen, pound, Swiss franc, Canadian and Australian dollars - fell. For the week ending February 4, the value of net positions held by speculators fell slightly to $28.72 billion long from $31.13 billion a week earlier.

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 then reverses, which is usually a bullish sign, especially as the 14-week momentum reading is positive.

The dollar edged higher on Monday after U.S. President Donald Trump warned more tariffs were imminent including on steel and aluminium. Note that there are good reasons to be long USD in February.

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