Palladium Price Analysis: XPD/USD consolidates recent gains below $2,700 on firmer USD

Palladium steps back from eight-day top, refreshes intraday low.
Steady US Treasury yields add to the USD strength amid covid woes, subdued Fedspeak.
Light calendar, pre-NFP sentiment join quarter-end consolidation will entertain bears.

Anil Panchal FXStreet

Palladium (XPD/USD) takes offers around $2,670, down 0.65% intraday, heading into Tuesday’s European session. The bright metal jumped to its highest since June 17 the previous day before the US dollar strength recalled the bears amid a light calendar and mixed updates.

Mixed concerns over the coronavirus (COVID-19) resurgence and Fed policymakers’ indecision put a floor under the US dollar. Also backing the greenback could be the recent pause in the US Treasury yields and the pre-NFP caution.

While Wellington is up for lowering the covid alert after witnessing a sustained absence of the new virus cases, pandemic conditions seem to worsen in Australia. Additionally, the UK registered the highest infections since January 30 on Monday.

It’s worth noting that the US PCE Inflation data poured cold water on the face of Fedspeak trying to defend the easy money policies. However, the policymakers remain cautious. Thomas Barkin, President of the Richmond Federal Reserve Bank, said on Monday, "The Fed has had substantial further progress against the inflation goal".

Also confusing the markets, adding strength to the US dollar and weighing the commodities, could be US President Joe Biden’s readiness for further stimulus versus Senate Republican Leaders’ efforts to tame the tax hike moves.

Amid these plays, the US 10-year Treasury yield takes a breather after dropping the most in a week whereas S&P 500 Futures print mild losses around record top.

Looking forward, US CB Consumer Confidence and China PMIs may offer intermediate moves for the palladium traders, mostly downside, ahead of the US Nonfarm Payrolls (NFP) for June.

Read: Signs of some labor constraints easing in time for June payrolls

Technical analysis

Unless breaking the $2,500 support confluence, comprising 200-DMA and an ascending support line from March 2020, XPD/USD buyers may remain hopeful.

Additional important levels

Overview
Today last price	2672.21
Today Daily Change	-16.82
Today Daily Change %	-0.63%
Today daily open	2689.03

Trends
Daily SMA20	2722.31
Daily SMA50	2817.29
Daily SMA100	2662.38
Daily SMA200	2503.26

Levels
Previous Daily High	2704.15
Previous Daily Low	2631.13
Previous Weekly High	2662.78
Previous Weekly Low	2474.75
Previous Monthly High	3018.8
Previous Monthly Low	2726.52
Daily Fibonacci 38.2%	2676.26
Daily Fibonacci 61.8%	2659.02
Daily Pivot Point S1	2645.39
Daily Pivot Point S2	2601.75
Daily Pivot Point S3	2572.37
Daily Pivot Point R1	2718.41
Daily Pivot Point R2	2747.79
Daily Pivot Point R3	2791.43

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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