Palladium Price Analysis: XPD/USD approaches six-month-old resistance
- Palladium prices grind higher at three-week tops after bouncing off 21-DMA.
- Successful trading above the key DMAs join receding bearish bias of MACD to favor buyers.
- Descending trend line from August 2021 challenges buyers targeting fresh 2022 high.
Palladium (XPD/USD) extends the previous day’s U-turn from 21-DMA to refresh a three-week high of around $2,390 during early Tuesday morning in Europe.
In addition to the successful rebound from the 21-DMA, the bullion’s ability to provide a daily closing beyond the 61.8% Fibonacci retracement (Fibo.) of July-December 2021 downside, near $2,370, also keep XPD/USD bulls hopeful.
On the same line is the recently recovering MACD line that tease the palladium buyers.
However, a downward sloping resistance line from August 2021, near $2,405, becomes the key hurdle for the metal buyers to cross before challenging the year 2022 peak of $2,415. Following that, the August 2021 high near $2,470 will act as the last defense for bears.
Meanwhile, pullback moves remain elusive beyond the aforementioned Fibo. level around $2,370.
Even if the XPD/USD bears manage to conquer the $2,370 immediate support, the 21-DMA and 50% Fibonacci retracement, respectively around $2,310 and $2,215, will challenge them.
Also acting as important support is the 200-DMA level of $2,165.
Palladium: Daily chart
Trend: Further upside 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.
