Palladium Price Analysis: XPD/USD eyes $2800 but overbought conditions warrant caution

XPD/USD dived out of the rising wedge on the 4H chart.
Palladium remains on track to recapture the $2800 mark.
However, overbought RSI conditions remain a cause for concern.

Dhwani Mehta FXStreet

Palladium (XPD/USD) is seeing sizeable gains above $2700 on Thursday, as the bulls reverse Wednesday’s drop below the latter.

The white metal tracks the bullish momentum seen across the precious metals space, thanks to the relentless sell-off in the US dollar across the board.

Price of Palladium

As observed on the four-hour sticks, the price of palladium has charted a rising wedge breakout after closing the candlestick above the trendline resistance at $2715.

At the press time, XPD/USD trades at $2728, flirting with four-week highs of $2730 reached in the last hour.

The price is poised for additional upside, with a test of the March highs at $2756 inevitable. Further up, the XPD bulls target the $2800 threshold.

Palladium price chart: Four-hour

However, the Relative Strength Index (RSI) has entered into the overbought region on the said time frame, warranting caution for the XPD bulls.

A pullback towards the pattern resistance now support at $2715 could be in the offing.

If the sellers take over complete control, the bullish 21-simple moving average (SMA) at $2684 could be put at risk.

The next line of defense for the buyers is seen at $2663, where the 50-SMA is located.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.