BUZZ-COMMENT-USD has room to stage an even bigger recovery

March 3 (Reuters) - The U.S. dollar has the room to stage an even bigger recovery in the days and weeks ahead, as the speculative long position falls.

The speculative long position - derived from net contracts of International Monetary Market speculators in the euro, yen, pound, Swiss franc, Canadian and Australian dollars - has continued to shrink.

For the week ending February 25, the value of net positions held by speculators dropped to $12.99 billion long from $20.88 billion a week earlier. The speculative long position peaked at $31.83 billion in January.

A smaller speculative long position means there is likely to be a decrease in offers and vulnerable sell stops that would usually hinder gains.

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 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".

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