Metals Shine, Indices Struggle: A Volatile Start to the Week
As the trading week begins on March 31, 2025, market sentiment is heavily influenced by a significant sell-off that occurred on the previous Friday. This downturn has resulted in fresh sell signals across major markets, leading to a challenging start for indices. European markets are opening lower, with the DAX index facing a critical horizontal support level, which is the neckline of a large head and shoulders pattern. A confirmed breakout below this level could trigger a substantial long-term sell signal.
Currency Market Overview
In the currency markets, there is a noticeable flight to safety. The Japanese Yen is experiencing gains, while commodity-linked currencies such as the Australian Dollar, New Zealand Dollar, Canadian Dollar, and even the US Dollar are showing weakness this morning. This trend reflects a broader risk-off sentiment among traders.
Commodity Performance
On the commodities front, metals are performing exceptionally well. Both gold and silver have risen approximately 20% year-to-date, continuing their upward trajectory with additional bullish pressure evident this morning. Oil prices are also experiencing a positive session, maintaining their midterm bullish momentum.
Cryptocurrency Market Sentiment
The cryptocurrency market is displaying a fragile mood. Ethereum is hovering near long-term lows after failing to maintain key support levels, while Bitcoin is under pressure following a breakout below a wedge formation, indicating further signs of weakness.
US Dollar Outlook
Attention is also focused on the US Dollar, which is showing indecision in early trading. The opening of the London session has introduced some volatility, and traders are advised to prepare for increased activity in the latter half of the day, particularly with the Non-Farm Payroll (NFP) report week approaching.