BUZZ-COMMENT-Dollar's recovery could spill into March

Feb 28 (Reuters) - The U.S. dollar recovery at the end of February could well extend into March as a bigger reversal higher could be underway.

Investors unnerved by the prospect of U.S. President Donald Trump's impending tariffs drove a wave of selling on Friday that hit risk-sensitive currencies such as the Australian dollar, boosting the U.S. dollar. The euro is also struggling against the greenback.

The USD index, which tracks the greenback against a basket of six major currencies, on Thursday registered the biggest one-day rise since mid December. That after it had failed earlier in the week to sustain the break under the 106.342 Fibo, a 38.2% retrace of the 100.150 to 110.170 (September to January) rise, a likely "bear trap".

A bear trap is set when a market breaks below a technical level but subsequently reverses and is usually a bullish sign. There is scope for further gains to the psychologically significant 108.00 level.

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