ECB: EUR Strength Mostly But Not Solely A Dollar Story, NEER Impact Contained

{SFIG6 96.45/55/65 call fly 1K given at 1.25, desks suggest looks like closing out of an existing position.

RXH6 127.50/125.00 1x2 put spread paper paid 49 on 2K (vs. 127.60) on 2K.

• In the equity space, the recent pullback in S&P E-Minis has been a correction. A key short-term support has been defined at 6771.50, the Dec 18 low. A break of this level is required to signal scope for a deeper retracement and would highlight a possible short-term reversal. For bulls, sights are on key resistance at 7014.00, the Oct 30 high. Clearance of this hurdle would confirm a resumption of the primary uptrend.
• A bull cycle in EUROSTOXX 50 futures remains intact and the latest pullback appears to have been a correction. The first key support to watch lies at 5691.88, the 50-day EMA. A clear break of the EMA would highlight a potential short-term reversal. This would open 5622.00, the Nov 26 low. For bulls, sights are on key resistance at 5847.00, the Nov 13 high. The price pattern on Dec 18 is a bullish engulfing candle - a reversal signal.