 Hello and welcome to CMC Markets on Tuesday the 9th of February and the weekly market update. Now we came off the back of a very difficult weekly session last week and I think markets were probably hoping for a bit of a respite this week in the absence of Chinese markets for Chinese New Year. Unfortunately investors have had other ideas, we've seen a massive sell-off again this week across the board on global markets and it's largely being driven by concern about the banks. The DAX has been particularly hit hard and in that context we're going to have a look at the DAX and the potential for further downside there. Also going to be looking at euro-dollar because that does appear to have broken out to the top side and given the fact that Janet Yellen, chairman of the Fed, chairwoman of the Fed is due to give testimony on Capitol Hill later this week it'll be interested to see whether or not she is more dovish than hawkish given the negative effects the strong dollar is having on US corporate earnings but also I think on wider global market volatility and we'll do a quick finish-up revisiting dolly end which my colleague Jasper covered last week and the potential for further losses there. I'm going to make a start with the German DAX. Now regular viewers of this weekly video will know that I've been looking at the DAX quite a lot over the past few weeks and really been targeting some very key support levels around about the 9,300 level and the 200 week moving average. This week both those levels have gone, they've given way and that for me is a potentially very bearish sign. It shifts the momentum entirely in terms of a buying the dip mentality to a concern that we could actually see further losses so if we look at this long-term chart that I put up in front of you right now you can see where the breakouts have occurred and what I've done is I've taken the move from the 2009 lows to the highs that we saw at the end or sorry at the beginning of last year and the next significant support level currently sits around about the 50% retracement level just below 8,000. Now we do have support just above that and that's at the 2014 lows which is around about the 8,300 level but certainly in the context of the overall scheme of things what we've seen this week if sustained into the end of the week on Friday would appear to suggest a significant sentiment change on the part of the DAX and as such there is significant potential for a move lower towards the 8,000 level which is a significant decline from the levels that we saw in the beginning of last year when we peaked out 12,200. Going to move on to Eurodollar and we've broken above a very key resistance level finally on the daily charts and we can see that on this chart that I put in front of you now it's around about 110.5 we've broken above it 110.50 we've been capped pretty much for the last two or three months around about 109.70 110 we finally pushed back above that and I think the reason we pushed back above that is markets are pricing out the prospect of the Federal Reserve will raise rates any further this year and there's even an outline you know there's even an outsized chance perhaps the Fed could actually be forced to cut rates now at the moment that isn't on the table but what it certainly has done is is given a bit of a bump higher in Eurodollar and I think as long as we stay above the 200-day moving average which is currently above 110.50 then we could well see further gains towards 114 and before I go and finish up on this particular chart I'd also like to draw your attention to a very long-term monthly chart for the Euro dollar and what I've done is I've taken the highs of 2008 around about 160 and projected the entire move from those highs at 160 to the lows that we saw 104.65 and the minimum retracement level for that particular move currently comes in around about 118 now if you look at where we were in 2014 we were around about 140 we've been all the way down to 104 and we haven't really had a significant correction to that move and that would suggest that we're probably well overdue one so certainly in the context of these two charts I've done the retracements on the 140 to 104 and the 160 to 104 and we have a significant inflection point there between 118 and 119 so there's potential over the course of the next few weeks and months the Euro dollar could well head back towards 118 over the course of the next few weeks and months that's obviously as long as we manage to stay above the 110 50 level on the daily charts the 200-day moving average and it's also important to note on the daily charts that the 50 and the 100-day moving average are also starting to turn higher as well so that does appear to suggest the momentum has shifted away from the dollar and towards the Euro and just to finish up to reinforce the negative dollar scenario we've broken that key 116 support level that my colleague Jasper highlighted in his video last week now if you work on the basis that we've been in a very significant up trend since the lows of 2011 we can see that on the daily chart to the peaks at 125 we do appear to have completed what looks like a very complex head and shoulders reversal if that is in fact the case and we managed to close the week below 116 then potentially we could move quite significantly lower over the course of the next 12 months towards 110 and potentially 105 so that concludes this week's weekly market update once again thanks very much for listening any questions I'm on Twitter at mHouston underscore CMC until next week this is Michael Houston talking to you from CMC Markets