Palladium Price Analysis: XPD/USD faces stiff resistance at $2715, upside still favored

XPD/USD confirmed a symmetrical triangle breakout on the 1D chart.
Palladium’s 4H chart shows strong offers placed near the $2715 region.
However, bulls continue to keep their sight on the $2800 mark.

Dhwani Mehta FXStreet

Palladium (XPD/USD) is consolidating below the monthly highs of $2711 reached on Tuesday, as the bulls gather steam for the next leg higher.

In doing so, the price of Palladium has turned negative for the first time in five days, suggesting that it could likely be bullish exhaustion before the uptrend resumes towards $2800.

Price of Palladium

As explained here, the white metal did confirm a symmetrical triangle breakout on the daily chart a day before. XPD/USD, therefore, remains on track to reach the $2800 threshold.

Palladium price chart: Daily

Palladium price chart: Four-hour

However, looking at a shorter duration chart, i.e, the four-hour chart, it can be seen that the XPD bulls are having a hard time taking out the strong barrier at $2715.

This level has limited the uptrend for now, where the rising wedge resistance lies. Note that the price is wavering within a rising wedge formation on the given time frame since end-March.

The Relative Strength Index (RSI) has edged lower, currently at 61.36, suggesting weakening upside momentum.

But the bullish crossover, with the 21-simple moving average (SMA) climbing above the 50-SMA, keeps the buyers hopeful.

A four-hour candlestick closing above the mentioned hurdle is needed to resume the northwards journey towards March highs of $2756, beyond which the $2800 level could be probed.

On the flip side, sellers could target the bullish 21-SMA at $2667 if the bearish pressures intensify.

Further south, fierce support at $2638 could offer some reprieve to the bulls. At that point, the upward-sloping 100-SMA coincides with the rising trendline support.

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.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.