Nasdaq Momentum ahead of bearish DXY

In anticipation of tomorrow's trading session, our focus keenly centers on the NASDAQ, where we are meticulously examining the potential for a strategic buying opportunity around the 16550 zone. The current trajectory of NASDAQ reflects a sustained uptrend, emphasizing a consistent upward movement. Presently, the index is immersed in a correction phase, gradually approaching the trend at the critical 16550 support and resistance historical zone. This numerical level holds significant weight, symbolizing both a historical inflection point and a crucial juncture where market forces may pivot.

Adding a layer of depth to our analysis, we take into consideration the broader monetary policy environment in the United States. The prevailing dovish stance in the US monetary policy has exerted downward pressure on the US Dollar Index (DXY), influencing a cascade effect across various indices, including the NASDAQ, due to their correlation. Acknowledging this interconnected landscape enhances our strategic approach as we assess the potential buying opportunity, aligning technical trends with the macroeconomic backdrop. The confluence of a robust uptrend, a critical support and resistance zone, and the influence of dovish monetary policy forms the foundation of our analysis for potential trading opportunities in the NASDAQ tomorrow.