Palladium Price Analysis: XPD/USD stays defensive around $2,600 key support
- Palladium snaps two-day downtrend, stays pressured of late.
- Bearish MACD, failures to cross 100-DMA keep sellers hopeful.
- 200-DMA, 61.8% Fibonacci retracement and June’s low add to the extra downside filters.
Palladium (XPD/USD) fades early Asian bounce off weekly low, up 0.10% intraday taking rounds to $2,615, ahead of Wednesday’s Asian session.
In doing so, the commodity seesaws around 50% Fibonacci retracement (Fibo.) of January-May upside and an ascending trend line from June 18.
With the bearish MACD signals firming below 100-DMA, coupled with failures to keep the latest rebound, palladium bears are likely to retake the controls.
However, a daily closing below the $2600 round figure becomes necessary ahead of targeting the 200-DMA level of $2,551.
Also acting as the downside filters are 61.8% Fibo. and the last month’s bottom, respectively around $2,510 and $2,460.
Alternatively, recovery moves remain elusive below the 100-DMA level of $2,750 but the return of $2665 and the $2,700 can’t be ruled out.
Overall, XPD/USD teases the bears ahead of the US Federal Open Market Committee (FOMC).
Palladium: Daily chart
Trend: Further weakness expected
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.
