Bunds opened on a positive gap yesterday and traded to within 4 tics of our daily target, but also our weekly sell rally trigger. Failure to maintain levels beyond 167.00 then led to a turn in investor sentiment with prices slipping back to the 13 day mvg avg which is currently acting as a pivot rather than a trend indicator. Failure to break that point means that signals for sentiment cannot be strong but with negative divergence a background factor we look for a more serious downside attempt.
Upside rallies near 166.91 should attract sellers. On the downside we target 166.42, 166.16 and 166.01 and only above 167.17 is positive.