Palladium Price Analysis: XPD/USD retests $2,600 as oversold conditions rescue bulls
|- XPD/USD attempts a bounce amid stabilizing risk sentiment.
- Oversold conditions on the 4H chart pause the sell-off in Palladium price.
- Impending bear cross could threaten the upside attempts.
Palladium (XPD/USD) is seeing some fresh signs of life this Tuesday, snapping its five-day losing streak, as the risk sentiment holds steadier on the session.
The industrial metal got sold-off into the global rout after concerns over the economic recovery mounted amid spiking Delta covid cases globally.
The risk-off mood bolstered the safe-haven demand for the US dollar, which exacerbated the pain in the USD-denominated Palladium price.
Price of Palladium
From a short-term technical perspective, XPD/USD is licking its wounds, moving slightly away from monthly lows of $2,571, as it battles the $2,600 barrier.
The upturn in the price of Palladium comes on the back of oversold conditions seen in the Relative Strength Index (RSI) on the four-hour chart.
The leading indicator is languishing below 30.00, currently at 14.72, suggesting that a further pullback in price is inevitable.
On its road to recovery, Palladium price is likely to meet strong resistance at the $2,650 psychological level.
The downward-sloping 21-Simple Moving Average (SMA) at $2,695 will then challenge the bullish interests.
Palladium price chart: Daily
However, the bulls could face a hard time sustaining the recovery, as a bear cross looms on the said time frame, with the 50-SMA gearing up to cut the 100-SMA from above.
If the selling pressure re-ignites, a drop back towards the monthly lows cannot be ruled out.
Further south, the bears will then target the $2,550 support area.
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