The Italian index is consolidating around 19000.00 at present after finding support around 18380.00 following the decline from 24000.00. This support level at 18380.00 has been used in 2017 as support when the market was moving higher. The next level of support below, should the current level break is potentially associated with the resistance from 2016 around 17420.00. Price consolidated below this area for some time in the lead up to the US Presidential election. The floor during that consolidation was 16000.00 with a low earlier in the summer around 15000.00.
Resistance is forming around the 19780.00 area ahead of 20000.00. There is also resistance from the previous support area around 20200.00. A break higher may look to test the 21000.00 area, which was used as support briefly this year. The lower high from September at 21680.00 may also interest traders if price rallies to that area. A break out above that point may suggest buyers are in control and look to test the resistance around 22240.00 with a view to tackling 23000.00 in due course.
The GBPZAR daily chart shows the pair is moving lower following pound weakness and has found short term support around 17.580. A loss of that area may suggest further selling for the pair as it trades on the Brexit headlines. The next potential area of support is found around the 17.149 area from August. Below this level 17.000 comes into view where traders may be positioned. If this level is breached, then traders may look to the early summer low around 16.533 as support.
The 200 DMA is found at 18.000 and a retest on this area would generate interest from traders. A break higher may push price up to the previous resistance and support level around 18.240, where price tried to use before the last leg lower. The 100 and 50 DMAs are found at 18.343 and 18.430 respectively. If price moves above these indicators it may point to a move to test the series of lower highs that has been forming since the summer. The first of these is around 18.850, with a push over 19.000 a further sign buyers area in control. A break higher to 19.618 may open the way to 20.000 and the high at 20.114.