On thursday ECB president Mario Draghi maintains a dovish tone on rates, Bund reacted with an attempt to rally from lows of 162 and closed 162.36 that day. However that rally was short-lived as the US Dollar continued to strengthen ahead of Trump's inauguration while pushing global bond yields higher.
Bund closed on a critical support level of 162, which has been an area of consolidation since the beginning of 2017. I do expect the markets to rebound on this technical level however, I believe the underlying trend is still intact. As the market reaches a critical resistance at 163.56 it sells off at a much faster pace, as you can see the market grinds slow on rebounds suggesting that selling pressure is still strong. My bias would be to stay short on Bund as sell into corrective rallies.
Macro highlights next week: - Draghi speaks (23/1/2017) - German IFO Business Climate (25/1/2017) - UK Prelim GDP (26/1/2017)