Palladium Price Analysis: 20-DMA triggers XPD/USD pullback from weekly top
- Palladium consolidates recent gains after four-day uptrend, refreshes intraday low at the latest.
- 10-DMA, bullish MACD signals challenge sellers, five-month-old resistance line adds to the upside filters.
Palladium (XPD/USD) stays pressured around an intraday low of $1,851.70, down 0.37% on a day as European traders brace for Wednesday’s bell.
In doing so, the bullish prices print daily losses for the first time in three days while stepping back from a one-week high. The pullback moves could also be linked to the quote’s failures to cross the 20-DMA level.
Even so, XPD/USD trading beyond 10-DMA and bullish MACD signals keep buyers hopeful of overcoming the immediate hurdle, namely the 20-DMA level of $1,871.
Following that, the $1,900 threshold and late October’s swing low surrounding $1,955 may tet the bulls before directing them to the $2,000 psychological magnet.
During the palladium’s run-up beyond the $2,000 mark, a multi-day-old resistance line near $2,072 and a two-month-old horizontal area surrounding $2,175 will be crucial to watch.
Alternatively, a downside break of 10-DMA level of $1,800 will re-open doors for the XPD/USD sellers to aim for the yearly low of around $1,695.
In a case where palladium bears dominate past $1,695, a March 2020 low of $1,494 should gain the market’s attention.
Palladium: Daily chart
Trend: Further recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
