 Hello and welcome to CMC Markets on Tuesday the 20th of January and the weekly market update and what a last few days it's been. Now those of you who attended the Analyst Debates webinar last Thursday will already know that I've covered one of the particular topics that I'm about to cover in this video and that's namely the gold price but as far as this week is concerned I'm going to be focusing on the key event of the week and that's the European Central Bank rate meeting. Now I could go into an enormous amount of detail about what Mr Draghi may or may not deliver on Thursday but I think the key thing to watch out for is the press conference because we've had all manner of numbers bandied about with respect to what we're going to get on Thursday and it's been leaked so much beforehand that I think there is a potential danger that maybe the Euro could be in danger of a little bit of a retrace. Now we've seen a significant lows in Euro yen, Euro sterling and Euro dollar and I'm going to look at the potential for a little bit of a rebound. The market is looking extremely short of Euros and I would argue that it's going to take a significant beating of expectations with respect to what Mr Draghi can deliver on Thursday to push the Euro that much lower. We've already seen in Euro sterling, lows of 0.7590, we've already seen in Euro yen, lows of around about the 134.5 level and I'm going to look at the daily charts on these particular charts because I think there is a danger here that we could be starting to get some evidence of trend exhaustion and a potential pullback and I think that's particularly noticeable on the daily candlestick charts. I'm also going to be looking at the gold price in light of Collins and my assessment of it in the trading debates webinar on Thursday. Now if you want to look back at that particular webinar, it is on YouTube, it's fairly easy to find and it was dated last Thursday. So we'll start by looking at the gold price that Colin and I were talking about on Thursday and we've made some progress from where we were on Thursday afternoon and we're actually testing the 1300 area, $1300 an ounce area and there's certainly potential for further gains towards the upside. Now we've broken out of the triangle earlier this year and to project the triangle breakout, what I've done is I've measured the distance from the lows that we saw at the beginning of November to the peaks in December as a really feasible target. I then projected that from the breakout point that we saw earlier this year. Now 100% of that distance comes in around about $1,330 an ounce. So we've already reached the 0.618 target. The minimum price objective for a triangle breakout is basically 100% or the equivalent to the base of that triangle and that currently lies around about the 1,330 area. So what could drive us up there? Well loss of confidence in central bankers, we've certainly seen evidence of that last week with the Swiss National Bank where they stated that they would keep the peg and then decided that they wouldn't. So much for forward guidance there and I think that's likely to underpin gold going forward, particularly if the European central bank continues on what it looks like a significant path of further easing. So let's move on to Euro sterling. Again it's a daily candlestick chart and again we found a little bit of a base around the 1,750 area. Now the likelihood is that as long as we hold above that low we've already posted a potential bullish engulfing pattern and as long as the price action stays above the lows of the last few days there is certainly potential for a squeeze higher towards that trend line resistance that I've drawn in from the December highs. So basically where I've circled that price action there. Which brings me nearly on to Euro yen and now this particular pattern looks to be potentially an awful lot more powerful. This is called a three white soldiers pattern and basically this pattern generally tends to come at the end of a very strong downtrend. Well we've certainly seen that from the highs that we saw in December on this daily candle chart. We've come down from highs just below 150 and found support around about the 134.5, 134 level and as we can see from this daily chart there is a significant area of support through those lows. Furthermore the oscillator is very oversold and three white soldiers is essentially three bullish candles in succession at the end of a downtrend with very, very strong bodies. Now at the moment the daily candle for the third day hasn't as yet closed so we need to see where it closes tonight. If we get a significantly strong close at the close of business tonight then there is certainly potential as long as we hold above the lows that we've seen for the past few days for a significant short squeeze. Now whether we get that as a result of a spike higher in Euro dollar or a spike higher in dollar yen is neither here nor there. This chart is giving me plenty or ample warning that there is certainly potential for a sharp short squeeze. Okay so that pretty much concludes the weekly market update for this week. All that's left for me to say is be careful out there. It's quite volatile and thanks very much for listening. This is Michael Houston talking to you from CMC Markets.