Palladium Price Analysis: XPD/USD bulls attack $2,600 on the bumpy road to recovery
|- Palladium gradually overcomes three-month low, up for second positive day.
- 50% Fibonacci retracement, 100-DMA guards immediate upside, multiple horizontal lines test the bulls afterward.
- Late March low, 61.8% Fibonacci retracement restrict short-term downside.
Palladium (XPD/USD) holds onto the previous day’s recovery moves from mid-March lows, taking rounds to $2,595 heading into Tuesday’s European session. In doing so, the precious metal gains 0.14% intraday as it battles the 50% Fibonacci retracement (Fibo.) of October 2020 to May 2021 upside.
Given the receding bearish bias of MACD and the commodity’s sustained trading above the key Fibonacci retracement, namely the 61.8% Fibo., Palladium buyers can cross the immediate hurdle surrounding $2,600. However, the quote's further upside will be probed by 100-day SMA (DMA) level near $2,650.
During the XPD/USD upside past $2,650, 38.2% Fibonacci retracement around $2,705 holds the key to the run-up towards two horizontal lines, stretched from late April and March, respectively around $2,730 and $2,760.
Alternatively, $2,560 may entertain the intraday sellers ahead of directing them to 61.8% Fibo. retest, near $2,505.
If at all the commodity prices fails to stay beyond $2,500, the latest low near $2,460 adds to the downside filters.
Overall, palladium remains on the recovery mode but multiple hurdles test the bulls and can offer intermediate pullbacks.
Palladium daily chart
Trend: Further recovery expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.