Palladium Price Analysis: XPD/USD justifies Wednesday’s Doji to defend $2,600

Palladium snaps three-day downside, recovers from weekly bottom.
Bulls track gold prices amid downbeat DXY performance.
US GDP, covid updates eyed for fresh impulse.

Anil Panchal FXStreet

Palladium (XPD/USD) rebounds from the weekly top, up 0.34% intraday around $2,615, ahead of Thursday’s European session. The precious metal dropped during the last three days before recently tracking gold prices, also taking clues from the US dollar, to portray the corrective pullback.

With the Fed’s refrain from speaking much on the tapering and US policymakers’ initial voting to discuss another stimulus, US Dollar Index (DXY) dropped to the lowest since July 13, down for the fourth consecutive day. Also weighing on the greenback could be an upbeat earnings season and comparatively stronger covid conditions than Australia, Europe and the UK.

That said, the DXY prints 0.12% losses on a day by the press time, tracking the US Treasury yields and S&P 500 Futures to the south.

It’s worth noting that the US dollar’s weakness directs the safe-haven flows to the gold as covid conditions in Asia-Pacific worsens.

Amid these plays, gold prices refresh one-week high, up 0.45% around $1,815 at the time of the press, the same favors other precious metals, namely silver and palladium to pick up bids.

Moving on, today’s first reading of the US Q2 GDP, expected 8.6% annualized versus 6.4% prior, could offer fresh direction to the XPD/USD prices as any further strengthening of the growth figures could exert additional downside pressure on the DXY and favor metals. Alternatively, a surprise weakness could put a floor under the US dollar declines and trigger the commodity’s pullback.

Technical analysis

Palladium battles the previous support line from June 18 around $2,620 after posting a trend-reversal suggesting candlestick the previous day. Also challenging the bulls is a downward sloping resistance line from July 12, near $2,655. On the contrary, 200-DMA near $2,550 becomes a strong support for XPD/USD bears to conquer before retaking the controls.

Additional important levels

Overview
Today last price	2615.3
Today Daily Change	8.80
Today Daily Change %	0.34%
Today daily open	2606.5

Trends
Daily SMA20	2725.44
Daily SMA50	2734.14
Daily SMA100	2750.79
Daily SMA200	2551.29

Levels
Previous Daily High	2623.84
Previous Daily Low	2589.94
Previous Weekly High	2722.83
Previous Weekly Low	2571.07
Previous Monthly High	2872.28
Previous Monthly Low	2461.72
Daily Fibonacci 38.2%	2602.89
Daily Fibonacci 61.8%	2610.89
Daily Pivot Point S1	2589.68
Daily Pivot Point S2	2572.86
Daily Pivot Point S3	2555.78
Daily Pivot Point R1	2623.58
Daily Pivot Point R2	2640.66
Daily Pivot Point R3	2657.48

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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