Current trend

Last week, the XPT/USD pair reached five-month highs, rising above the 1000.00 mark (Murrey level [8/8]) amid the escalation of the military conflict in the Middle East over the weekend. A series of attacks by Iran on Israeli infrastructure facilities has caused concern among market participants, acting as a catalyst for redirecting investor capital into traditional safe haven assets such as precious metals. Nevertheless, experts assessed the damage as minor, convincing the market that there would be no expansion of the military operation outside the region, which, in turn, led to a significant price correction during the week.

Additional pressure on quotes was exerted by an increase in the likelihood of postponing the timing of easing the monetary policy of the US Federal Reserve from June to September due to the resumption of upward dynamics of consumer prices in recent months. The head of the regulator, Jerome Powell, said that it will take longer than previously thought to reduce inflationary pressure in the economy, and in the current conditions, given the strong labor market, it is necessary to keep interest rates at the current level.

These negative factors may persist in the short term, which may ensure a further decline in the XPT/USD pair.

Support and resistance

Technically, the price has adjusted to the level of 937.50 (Murrey level [4/8]), supported by the central line of Bollinger Bands, which is now actively testing. Consolidating below it will allow quotes to continue to decline towards the targets of 906.25 (Murrey level [2/8]) and 875.00 (Murrey level [0/8]). With a reverse breakout of the 953.12 mark (Murrey level [5/8], 38.2% Fibonacci retracement), price growth may resume to 984.38 (Murrey level [7/8], 50.0% Fibonacci retracement) and 1000.00 (Murrey level [8/8]).

Technical indicators do not give a clear signal: Bollinger Bands are directed upwards, MACD is preparing to leave the overbought zone, but Stochastic is decreasing in the positive zone.

Resistance levels: 953.12, 984.38, 1000.00.

Support levels: 937.50, 906.25, 875.00.

Trading tips

Short positions should be opened from the level of 932.00 with targets of 906.25, 875.00 and stop-loss around 945.00. Implementation period: 5–7 days.

Long positions can be opened above 953.12 with targets of 984.38, 1000.00 and stop-loss near 940.00.