Palladium Price Analysis: XPD/USD retests $2,600 as oversold conditions rescue bulls
- XPD/USD attempts a bounce amid stabilizing risk sentiment.
- Oversold conditions on the 4H chart pause the sell-off in Palladium price.
- Impending bear cross could threaten the upside attempts.
Palladium (XPD/USD) is seeing some fresh signs of life this Tuesday, snapping its five-day losing streak, as the risk sentiment holds steadier on the session.
The industrial metal got sold-off into the global rout after concerns over the economic recovery mounted amid spiking Delta covid cases globally.
The risk-off mood bolstered the safe-haven demand for the US dollar, which exacerbated the pain in the USD-denominated Palladium price.
Price of Palladium
From a short-term technical perspective, XPD/USD is licking its wounds, moving slightly away from monthly lows of $2,571, as it battles the $2,600 barrier.
The upturn in the price of Palladium comes on the back of oversold conditions seen in the Relative Strength Index (RSI) on the four-hour chart.
The leading indicator is languishing below 30.00, currently at 14.72, suggesting that a further pullback in price is inevitable.
On its road to recovery, Palladium price is likely to meet strong resistance at the $2,650 psychological level.
The downward-sloping 21-Simple Moving Average (SMA) at $2,695 will then challenge the bullish interests.
Palladium price chart: Daily
However, the bulls could face a hard time sustaining the recovery, as a bear cross looms on the said time frame, with the 50-SMA gearing up to cut the 100-SMA from above.
If the selling pressure re-ignites, a drop back towards the monthly lows cannot be ruled out.
Further south, the bears will then target the $2,550 support area.
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.
