Palladium Price Analysis: XPD/USD faces stiff resistance at $2715, upside still favored

XPD/USD confirmed a symmetrical triangle breakout on the 1D chart.
Palladium’s 4H chart shows strong offers placed near the $2715 region.
However, bulls continue to keep their sight on the $2800 mark.

Dhwani Mehta FXStreet

Palladium (XPD/USD) is consolidating below the monthly highs of $2711 reached on Tuesday, as the bulls gather steam for the next leg higher.

In doing so, the price of Palladium has turned negative for the first time in five days, suggesting that it could likely be bullish exhaustion before the uptrend resumes towards $2800.

Price of Palladium

As explained here, the white metal did confirm a symmetrical triangle breakout on the daily chart a day before. XPD/USD, therefore, remains on track to reach the $2800 threshold.

Palladium price chart: Daily

Palladium price chart: Four-hour

However, looking at a shorter duration chart, i.e, the four-hour chart, it can be seen that the XPD bulls are having a hard time taking out the strong barrier at $2715.

This level has limited the uptrend for now, where the rising wedge resistance lies. Note that the price is wavering within a rising wedge formation on the given time frame since end-March.

The Relative Strength Index (RSI) has edged lower, currently at 61.36, suggesting weakening upside momentum.

But the bullish crossover, with the 21-simple moving average (SMA) climbing above the 50-SMA, keeps the buyers hopeful.

A four-hour candlestick closing above the mentioned hurdle is needed to resume the northwards journey towards March highs of $2756, beyond which the $2800 level could be probed.

On the flip side, sellers could target the bullish 21-SMA at $2667 if the bearish pressures intensify.

Further south, fierce support at $2638 could offer some reprieve to the bulls. At that point, the upward-sloping 100-SMA coincides with the rising trendline support.

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.