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.

Dhwani Mehta FXStreet

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.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.