Palladium Price Analysis: Two-month-old support line defends XPD/USD bulls above $2,500

Palladium prices fade bounce off multi-day-long support trend line.
Bearish MACD, failures to cross 21-DMA keep sellers hopeful.
Convergence of 50-DMA, 100-DMA appears tough nut to crack for bears.

Anil Panchal FXStreet

Palladium (XPD/USD) retreats to $2,515 while paring the intraday gains ahead of Wednesday’s Asian session.

The precious metal bounced off an upward sloping support line from mid-December 2021 during the last week. However, the following rebound couldn’t even cross the 21-DMA.

That said, bearish MACD signals also favor sellers even if the quote stays 1.30% up intraday as the 50% Fibonacci retracement (Fibo.) of December-March upside, near $2,487, limits the short-term downside.

In a case where the quote drops below $2,487, the aforementioned support line from late 2021, around $2,455 by the press time, will be crucial to watch for the XPD/USD bears as a break of which will direct the quote towards 61.8% Fibonacci retracement level of $2,261.

Should palladium bears keep reins past $2,261, a confluence of the 100-DMA and the 200-DMA surrounding $2,160-70, will be on their radar.

Alternatively, recovery moves beyond the 21-DMA level of $2,682 needs validation from the $3,000 round figure to recall the XPD/USD buyers eyeing the monthly top near $3,411.

Palladium: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	2512.38
Today Daily Change	26.12
Today Daily Change %	1.05%
Today daily open	2486.26

Trends
Daily SMA20	2690.23
Daily SMA50	2466.49
Daily SMA100	2161.35
Daily SMA200	2157.71

Levels
Previous Daily High	2576.76
Previous Daily Low	2477.09
Previous Weekly High	2769.49
Previous Weekly Low	2330.63
Previous Monthly High	2706.5
Previous Monthly Low	2193.25
Daily Fibonacci 38.2%	2515.16
Daily Fibonacci 61.8%	2538.69
Daily Pivot Point S1	2449.98
Daily Pivot Point S2	2413.7
Daily Pivot Point S3	2350.31
Daily Pivot Point R1	2549.65
Daily Pivot Point R2	2613.04
Daily Pivot Point R3	2649.32

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.

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