Palladium Price Analysis: XPD/USD extends pullback from June’s low towards 10-DMA
- Palladium drops for second consecutive day, holds lower ground of late.
- Downbeat Momentum line fails to entertain bears, 200-DMA, six-week-old resistance line add to the upside filters.
Palladium (XPD/USD) remains on the back foot around $2,425, down 0.45% intraday ahead of Thursday’s European session.
The precious metal took a U-turn from June’s low the previous day, extending the losses so far during Thursday, amid a downbeat Momentum line.
Hence, the quote’s fall to the 10-DMA surrounding $2,400 becomes imminent. However, any further declines will be challenged by the $2,300 round figure and monthly low of $2,263.
Meanwhile, a daily closing past $2,461, comprising June’s bottom, enables the XPD/USD buyers to aim for a 38.2% Fibonacci retracement level of May-August fall, around $2,550.
It should be noted, however, that a confluence of 200-DMA and a descending trend line from July 12, around $2,575-80, becomes a tough nut to crack for the palladium buyers afterward.
Overall, XPD/USD remains pressured but cautions market sentiment and downbeat Momentum challenges the bears of late.
Palladium: Daily 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.
