 Hello and welcome to CMC Markets on Tuesday the 13th of May and the weekly market update. Now I get an incredible sense of deja vu when I do these things because usually I'm talking to you about disappointing economic data and record highs or new highs on equity markets and it's pretty much the same old, same old that we're talking about this week. The S&P 500 has hit the 1900 level for the first time ever. The FTSE 100 has hit its highest levels in 14 years since the New Year's Eve 1999. We of course know what happened soon after 1999. The FTSE 100 dropped four or five hundred points in a month. Now I don't think that's going to happen on this occasion. I think the expectation is that despite the geopolitical risks, despite the disappointing economic data, there is an expectation on the part of investors. Essentially I think that central bank monetary policy will continue to remain accommodative. We've heard some very dovish comments out of the Federal Reserve to try and offset the effects or the tightening effects of their tapering policy. We've heard Mario Draghi last week intimate that the ECB remains comfortable enacting at the June meeting with respect to monetary policy and that's got markets really excited about the prospect of some form of loosening of monetary policy at the June ECB meeting. With that in mind I'm going to be looking at three euro pairs as part of this weekly update. We've also had very disappointing Chinese economic data and yet once again we're seeing the mining sector actually go higher and I think once again it's on the expectation that Chinese authorities will look at invoking further stimulus. I think however that particular thought could actually or that could actually be slightly misplaced because President Xi has gone to great lengths, the Chinese President has gone to great lengths to suggest that further large-scale stimulus is pretty much off the table while they deal with the problems within their banking system. So what we're going to look at this week we've got a host of economic data to look forward to. The most important of which is going to be the inflation data out of Europe. We're looking at the final inflation data from Italy and we've already seen that it's come in slightly weaker at 0.5 percent but we're also looking at French inflation data, CPI data, German CPI data and the broader EU CPI data. It's highly likely that we could, it's highly likely that that is probably likely to remain weak and in that context we're going to look at these three pairs, euro-dollar, euro-Canada and euro-yen where there are some nice patterns starting to form. I'm going to start with euro- dollar. Now on Wednesday and Thursday we've got French, French and German CPI on Wednesday and then we've got GDP data from the big three economies in Europe and broader EU GDP data on Thursday as well as CPI data. Now the expectation is we're going to get some form of easing from the ECB in June. I would add a little bit of caution, a little note of caution to this. It's heavily caveated and Mr Draghi has said that it's heavily caveated in terms of the inflation forecast data which we'll get updates on for 2016. If that's revised down then we can expect some easing from the ECB. What we won't get is quantitative easing so really it's a question of what type of easing do we get. So let's look at euro-dollar, let's look at this daily chart and we can see we've got the potential formation of a double top. Now if we look at this chart I've drawn horizontal lines through the highs around just below 140 and I've also drawn a horizontal line through the February and April lows and that's really the key support level that I'm looking at on euro-dollar it's between 13650 and 13675. If we break below that particular that series of lows then we can I think we can significantly argue that we've got a double top in place and we could well see a three or four hundred point move lower on a break and a close below that key support line. So that's the area to keep a keep an eye on. We've broken the up trend line that's been in place since the middle of last year in July. We've broken below the 100 day moving average. The next target is that trend line support around about 13650, 13675 and the 200 day moving average. Now let's move on to Euro Canada and you can see straight away this is a beautiful chart formation it's a head and shoulders reversal. Now we've broken the neckline and that's quite significant but what we haven't done as yet is we haven't broken the February lows around about the 149 area and that's really the next key support level. If we break below 149 then there's a fairly good chance that we could see a much more aggressive down move in Euro Canada. Now how is that going to come about? Is that going to come about by a decline in dollar Canada or is it going to come about as a decline in euro dollar? To be quite honest as chartists we don't care. We trade the currency pair if we move below that neckline in Euro CAD then I think there's a good chance we could trade significantly lower. I'm going to finish up with Euro yen and as in the other pairs we're on a fairly key support area. The key support area that I'm particularly interested in is 13980. It's the April lows and it's the May lows and it's also kumo cloud support. So it's fairly significant if we push significantly below that particular level then once again as in the other crosses we could we'll see further declines in Euro yen. Now one of the factors that could drive Euro yen is the Japanese GDP numbers that are due out first thing Thursday morning. So it's not just about looking at the Euro data that's out this week. With respect to Euro yen also keep an eye out on the Japanese data that's out on Thursday morning. So that's it for this week. Just leaves me one other thing to say and that's to tell all you guys about a special webinar event that my colleague Colin Sizinski and I will be holding on Thursday the 15th of May at 3pm UK time. It's half an hour and basically Colin and I will be talking about this week's events in the market what expectations are for economic data and really where we think markets are going to go over the course of the next week or so. We'll also talk about what works for us in terms of trading techniques and more importantly than that what doesn't. So there'll be a link along here if you want to sign up for that event more than happy to accommodate you and we look forward to talking to you then. So that's it for this week. Thanks again for listening. This is Michael Houston talking to you from CMC Marcus.