Palladium Price Analysis: XPD/USD bulls battle support-turned-resistance around $2,500
- Palladium revisits 200-DMA, five-month-old trend line on a bounce from three-month low.
- Bearish MACD, strong upside hurdles and US dollar strength probe the buyers.
- Horizontal area from November 2020 adds to the upside filters, sellers brace for a bumpy road ahead.
Palladium (XPD/USD) consolidates recent losses below $2,500, up 0.82% intraday near $2,495 ahead of Monday’s European session. In doing so, the bright metal keeps the bounce off March 17 lows, flashed the previous day, to battle a convergence of 200-day SMA and previous support line.
Given the strongest bearish bias of the MACD in 15 months, coupled with the sustained trading below the key levels, palladium prices are likely to remain pressured toward the late November 2020 tops surrounding $2,435.
It’s worth noting that there are multiple supports around $2,350 and the $,2300 threshold before dragging the quote to March’s low of $2277 during the commodity’s further weakness.
Alternatively, a clear upside break of $2,500-05 resistance confluence, previous support, won’t offer a free pass to the buyers as a seven-month-old horizontal hurdle around $2,520-30 becomes a tough nut to crack for palladium buyers.
Even if the precious metal prices cross the $2,530 hurdle, there are multiple hurdles around $2,575 and $2,685-90 before highlighting May’s low of $2,725 for the bulls.
To sum up, Palladium bears seem to take a breather but aren’t out of the woods.
Palladium daily chart
Trend: Bearish
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.
