Palladium Price Analysis: Drops towards $2,400 on weekly support break
- Palladium takes offers to refresh intraday low, prints three-day downtrend.
- Downward sloping RSI, failures to cross 100-SMA also strengthen bearish bias.
- Bulls may refrain from entries unless crossing six-week-old falling trend line.
Palladium (XPD/USD) remains on the back foot for the third consecutive day, refreshes intraday bottom around $2,412 heading into Thursday’s European session.
Having failed to cross 100-SMA, the precious metal broke an ascending trend line from August 26 the previous day. The same joins descending RSI line to keep sellers hopeful.
Hence, the latest swing low, comprising 23.6% Fibonacci retracement of July 23 to August 23 downside around $2,370, lures the XPD/USD bears for now.
However, a clear downside past $2,370 won’t step back from challenging the last month’s low of $2,260. During the fall, August 20 peak surrounding $2,330 and the $2,300 threshold may offer intermediate halts.
Meanwhile, corrective pullback needs to cross the previous support and 100-SMA, respectively around $2,440 and $2,455, to justify the capacity of rebound.
Even if the quote manages to rise past $2,455, a 12-day-old horizontal hurdle near $2,473 and descending trend line from July 23, close to $2,575, will be crucial for the palladium buyers.
Palladium: Four-hour chart
Trend: Further weakness 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.
