 Good morning and welcome to today's products and focus and very much what all traders are still looking at today Is this situation in China and how bad can it really get that what real impact does China have on the rest of the world? Anyway, well that question might be quite obvious But what we're seeing right now is China is looking to devalue the Yuan Which is very much going to give them a competitive advantage in regards to their exports across to the rest of the global economy What that does is put a lot of pressure on to a lot of the other neighbouring emerging market economies as they then try to compete To make themselves more competitive as well So it's capital outflow of the emerging markets now that are looking that's looking to impact the rest of the global economy So China devaluing the currency to try to support their economy and that's having a knock-on effect on the other Perhaps weaker emerging markets, which do play a very important part in the wider global economy as well lots of FX issues as well When you look at kind of potential currency wars between countries if everybody starts to devalue their currency to be competitive Where does it stop what you have to think as well as we have currencies work one currency is obviously always trading against another So if you keep on weakening one and then the other person weakens the other one as well You play this kind of cat-and-mouse game and that does have potentially big ramifications for it For a lot of the other smaller countries as well slow down in China obviously impacts Europe with Germany obviously getting hit quite a hard the last couple of sessions with Monday being quite aggressive Tuesday was okay But Wednesday where we are this morning We're already beginning to see a little bit of a sell-off in the and the kind of the wider European index range US slowly taking off as well But what we're gonna do now is we're gonna have a quick look at some of the core major products and Have a look at the technical levels following on the from that news today as well And the other geopolitical thing to think about Middle East is obviously still very very important But we are of course now seeing on the news wires at North Korea and basically come out and said they've done their first miniaturized hydrogen bomb test and that's caused a lot of condemnation in South Korea unsurprisingly and also Japan so we're looking at the Japan to be filed and Dollar yen in just a second. Let's have a look at the charts now So if we keep our eye on the US 30 We you can see that we are now trading below potential support close to 17,000 and 50 We have already broken below that this morning We've also not had a close below that with the next potential support at 16 9 36 seems your clients are currently 64% long So as this begins to sell off you might notice that more Clients will begin to try and pick the bottom of this of this index We're trained below both moving averages. The other technicals are still relatively neutral And the reason why we've got this level here at 69 36 is it's the tip of this candle right here So a previous broken resistance now acting as potential support every break below that however Things do get a little bit more dicey and we will be looking at 15,979 as being the next potential support level Moving on to the UK 100 We were in the middle of two ranges yesterday And you can see but along tips of these candles that there is buying interest the closer we get to 6052 now we are a little bit away from there right now and we are off the session lows But undoubtedly well, we have a bearish engulfing pattern currently and this also will be trading below that 21 period SMA we almost have a debt kind of a negative cross there on the MACD The other technicals are relatively neutral So then moving on to Japan 225 58% of clients are currently long We are firmly below 18442 which was potential support broken through there on Monday We tried to break through on Tuesday as you can see the tip of the candle ticked above it Then push back down But we're off the session lows and we are seeing extra negativity in Japan because of that North Korean Bomb test, it's not really going to have a Kind of a longer term impact on Japan unless there is a breakout of hostilities But as ever just means more military spending more defense for Japan heightens tensions and everything else and obviously you have people buying the Japanese yen which is making Things making Japan slightly less competitive in regards to the exports and obviously China as a big export Import area for the Japan region log return potential support 17172 So they're moving on to Onto a dollar yen and you just see how aggressively this this has come off again We were down at the potential support and this is a support from back back here in March We have pierced it before but we've not closed below this level well since March last year, so Many traders will be keeping an eye. It's bounced perfectly off it this morning We're about halfway up the the work of that candle, but 118 spot 33 That is a potential level to look out for death cross on the moving averages We are obviously oversold on this FX pair, but the signal to buy has not yet been given and Clients by top clients by position value are currently 67% long So they're obviously hoping for a turnaround as well moving on to West Texas We are slowly drifting lower towards the bottom end of the range of 34 spot 26 That is a three. It's not quite three black crows yet We need three black crows as a technical signal with three quite negative candles This candle needs to be bigger than this one But we're obviously the bottom end of the range so far this morning other technicals are relatively neutral I think West Texas crude doesn't really know what to do with the Iran Saudi Arabia intentions Because they're both oil producers and they're both looking to pump a lot But they both have a lot to lose if there is a ratcheting up of tensions i.e. armed conflict Now they are obviously already involved in proxy wars in Syria and Yemen But a full-blown conflict between these between these two nations that would be a bit of a big deal But interestingly enough if you look at the client sentiment section seems he clients are 50 50, okay? So I'd be interesting to see how that pans out then moving on to onto gold ever so slightly Gold has if we actually get my drawing tool out here for a quick second You can get a bit of a flavor as to the potential resistance round about 1087 and we would probably take the tip of this candle here as being we're still quite range bound basically on on gold and We really need to get a move beyond 1087 before we get that a little bit more excited that would be a technical break And also get us above that 55 period SMA. We are seeing three advancing candles right now Which should be quite interesting, you know while since you've actually posted three bullish candles in a row In fact, you'd have to go all the way back to October last year to get a chance to see that And that's currently where we are, but we're edging closer for technical traders It looks to be that 1087 is a level to watch out for and then we finish up with your dollar And GBP USD so your dollar broke through that technical support level. We talked about yesterday one spot 08 20 broke through yesterday And we are a negative territory again this morning. We had a failure to break higher We were positive for a very short period of time only for them to get pushed down currently seems your clients are 65% net long as next short Sorry, so they're bullish on the US dollar and negative on the euro and we then finish up with GBP USD You can see that we're pretty much bang on one spot 46 44 This is a very important support level as you can see it's from March or they're on this year We have been lower But this is a this is a level that technical traders would be looking at Because we didn't close below this point So you always take your furthest nor the furthest left point in that regard But we are at the bottom of the range so far sterling not doing so good So if I actually just quickly go into my weekly charts for a second Let's find out for the next potential support level is and you have to go back you would Yeah, you would you would pretty much go down to here So there could be a lot of further dentite one spot 42 30 should that remain in and play as well So that is a that's where we are for GBP USD I would just very quickly bring my market calendar into focus. These are the core economic data releases due today We do have a PMI and then you do have trade balance factory orders They purchasing managers index PMI and the petroleum data sales as well for those of you that are watching in the UK This is actually 9 a.m. UK time 1 30 3 3 o'clock and 3 30 because I'm recording this from Germany Okay guys, thank you very much for for your attendance today I hope you found today's session quite quite interesting and useful lots of very cool technical levels To be aware of and join me again tomorrow to find out what happened next