 Hello and welcome to CMC Markets on Tuesday the 27th of September and as quick a look at the markets and no surprises for guessing what I've got my eye on this week. It's Deutsche Bank, German DAX and Volkswagen as well because both of these blue chip German shares are significantly under pressure and I think there is a concern that ultimately we could see further declines. First and foremost Deutsche Bank is pretty much in focus because over the last three weeks we've seen a significant slide-off in the share price. First and foremost largely as a result of that news about a $14 billion fine from the US Department of Justice and while no one expects Deutsche to actually pay that amount I think there is a significant concern about a loss of confidence I think in Deutsche's ability to not only deal with its current problems but actually generate any type of profit going forward and it's not been helped by weekend speculation that German politicians might not be inclined to actually help the bank out if its problems become more acute or you can see the reaction in the share price. Now this is a chart that I've been looking at for quite a number of weeks now and been targeting a lower share price and we did rally in August but we weren't able to get back above the 14 euro mark posted a little bit of a double top there but we also respected the trend line resistance from the highs that we saw in March. Now what's more worrying I think in terms of this weakness is the fact that we've broken below the series of lows that we saw in July and August and we've also broken below the 10 euros at 75 level and I suggested a few months ago that if we did do that then there was certainly potential to go an awful lot lower and certainly if you base your pattern targeting on this projection that I did here and has been there for quite some weeks now then we are looking at a sub 10 euro valuation on Deutsche Bank so what's needed for this downward pressure to become a little bit more mitigated well for me we really need to get back above 10 euros and 80 cents for any sort of stabilization in the current momentum in the share price and for me this is about confidence this is about confidence in the ability of the bank to turn around its current problems and it certainly doesn't help one year before an election if the German government makes it quite clear that ultimately you're on your own now I don't for one moment think that the German government when push comes to shove will abandon Deutsche to its fate but there is a political aspect to it it's seen in the Italian banking sector and German officials are very insistent that Italy sorts out its own banking problems by way of bailing in bondholders and depositors no tax for it no taxpayer funded bailouts so I think this is a story that could well have further to run we could see some short squeeze short squeezes in the Deutsche Bank share prices politicians seek to reassure nervous investors but ultimately given current concerns and given Deutsche's current problems it's going to take much more than political reassurance to actually I think signal any sort of confidence that the bank can turn itself round Volkswagen is also declining on similar concerns about fines from US regulators it is trading in a broad sideways consolidation and has been now for over for around about 12 months there's decent support coming in from the lows that we saw last October so while we may see weakness in the short to medium term I think it's probably unlikely that we're going to break below this trend line support here so certainly we could see further declines but ultimately I was I would expect to see this sideways range that we've been in over the course of the past 12 months to continue which brings me neatly onto currencies dolly n is something that I've been is one currency pair that I've been looking at for quite some time now regular viewers of my videos will know this I've been fairly bearish on dolly n for quite some time I continue to be bearish on dolly n key resistant key support level for me is 9950 it's this series of lows through here the key resistance is the Kumo cloud resistance from the highs that we saw at the beginning of this year at the end of January beginning of February while this resistance level holds here at 102 50 the likelihood is that downward pressure will continue to be maintained so watch 9950 I think there's going to be a very key support level if that goes then we could well see further dollar losses and further yen gains thanks very much for listening this is Michael Houston talking to you from CMC markets