 Hello and welcome to CMC Markets on Tuesday the 15th of April and this week's weekly market update. And we're really coming off the back of a significant amount of volatility over the past few days. We've seen a bit of a sell-off on the S&P, some of its earnings related I would suggest, or concerns about future earnings. Obviously there's concern about what's going on in the Ukraine right now. And there's also a little bit of concern about a potential slowdown in Chinese economic growth. And I think that's making investors ultra-cautious. As we head into the Easter break and obviously we have a shortened four-day trading week this week. So going to have a quick look at the S&P 500, look at some of the key support levels on that. We've also had some fairly important, and we're going to be getting some fairly important inflation data this week. We've had the UK inflation data that's come in at a four-year low. It's lower since November 2009 at 1.6% CPI. We've got US inflation, which is coming in round about the same sort of level, round about 1.6%, 1.7% year on year. Wednesday we've got EU inflation and I think that's going to be particularly important given the comments of ECB President Mario Draghi over the weekend at the IMF. So we'll be looking at cable, we'll also be looking at euro-dollar. And if we do get a bit of time at the end, I'm going to quickly show you a dollar-Canada chart and a potential reversal in that. And also a quick reminder that I have a forex presentation, which I'll be holding here in the London office tomorrow evening at around about six o'clock. So let's start with the S&P 500. We can see from the chart that I put up in front of me, it's a daily chart. We've had a significant rebound off the support level, which also coincided with the November and December highs of last year. We've broken that sloping uptrend line. And there is a chance that we could actually get a bit of a pullback after the declines in recent days. I think the key level for me is, given the reversal that we saw on Monday, it's not quite a bullish engulfing day. It's more a piercing pattern. So it's not quite as strong, but it does seem to suggest that maybe we could get a pushback towards around about 1840 or 1850. If that's the case, then, and we break through that level, then we could even go all the way back to 1860. But the key support on the downside is the long-term trend line that comes in through the February lows, just below the 1813 support area, which currently comes in around about the 1800, 1798 area. So I think potential for a bit of a pullback in the S&P. But overall, I think there's going to be an awful lot of concern about future earnings growth, future earnings potential going forward. And that could well cap the top side. Right, let's move on to the pound against the dollar. Now, my webinar yesterday, I showed all the people who attended a cable chart six month daily and a potential evening star reversal pattern on the daily candles. What we need to see on that particular chart is for the price action to close below the downtrend line. We've had a double tap of 16820. And while that 16820 level holds, then there's a good chance that we could well start to correct lower back towards the long-term trend line support, which currently comes in at 16570. And that is highlighted by that blue arrow that is displayed on the chart that you see in front of you. So keep an eye on the 16670 80 area. If we break below there, then there's a good chance I think that we could well see a test of that trend line support. And I think that could well be even more likely if the unemployment rate continues to fall in Wednesday's economic data is currently expecting 7.2%. And average earnings is expected to start to rise above the rate of inflation. Again, that could well invite speculation that a rate rise is less likely in the short to medium term. And as a result, we can the pound ever so slightly. So let's move on to the euro dollar. Now, we heard Mario Draghi at the weekend try and talk the euro lower again. And to some extent, he has succeeded because as you can see from the chart in front of you, we did open well below Friday's close. We've got a nice little gap in the daily candles. But you can see the price action remains fairly in a fairly tight range. And I think that's quite important because even though the ECB want the euro lower, they're very limited in what they can do to get it lower. Yes, they can cut the refinancing rate to zero. They can do a negative deposit rate. But unfortunately, it won't resolve the underlying problems within the euro area. And that is the fact that the banks are still looking at rebuilding their balance sheets in time for the asset quality review. So the key level for me, we could well see a little bit of further euro weakness, particularly if US economic data continues to improve. And I think that's what Mr Draghi is hoping will happen. He's trying to buy time. The key support level for the uptrend that we've seen so far, since the middle of last year comes in at 137.10. 137.10 and also that blue moving average line. That's the key support level. If we break below there, then I think there's a good chance we could actually start to correct down towards the 200 day moving average. But overall, the market's not convinced about the ECB's ability to get the euro lower. And Mr Draghi is hoping that US economic data will do the job for him. Just going to finish off with these a couple of dollar CAD charts here. Now a couple of weeks ago in non-farm payrolls, we saw a triangle breakout on Dollar Canada. And it met its minimum price objective. In fact, the triangle breakout more than exceeded it. But since then, we've seen a bit of a bounce back. And I think the key question is, will Dollar Canada continue to fall? Or will it start to bounce back and go back the way that it came? Well, you've seen the four hour chart. Now here's the daily chart. And the daily chart is potentially showing a well is actually showing a bullish engulfing day, which does seem to suggest that we could see a bit of a bounce back after hitting the lows in Dollar Canada a couple of days ago. I think the key level to keep an eye on on that particular Dollar Canada chart is around about the 110 20 area. If we're able to consolidate and move back above 110 20, then I could then I think there's a distinct possibility that we could well head towards 111 and maybe even back to 112. So that's pretty much it for this week. And all that's left for me to do is wish you all a happy Easter. And I will see you all again after Easter next week. Before I sign off, just another quick reminder for a seminar tomorrow Wednesday evening, 16th of April, starting at 6pm here in the London office. Until then, thank you very much. This is Michael Houston talking to you from CMC Markets.