BUZZ-COMMENT-Dollar's downside limited by solid technical support

Feb 11 (Reuters) - The U.S. dollar's downside is limited by solid technical support that could lead to greenback gains in the days and weeks ahead.

The dollar is consolidating on Tuesday as markets become increasingly numb to U.S. tariff threats while awaiting testimony from Federal Reserve Chair Jerome Powell later in the day and inflation data on Wednesday. However, there is room for the U.S. dollar to climb due to the recent reduction in the speculative long position.

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.

The thick daily cloud, that currently spans 106.445-108.055 region, continues to underpin the USD index and that increases the scope for recovery moves to February 109.880 peak. However, a break under the cloud would signal a shift in risk to the downside.

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