Palladium Price Analysis: XPD/USD eyes to re-test 10-DMA support
- Palladium prices reverse from weekly high, retreat inside monthly falling channel.
- Descending trend line from February lures short-term bears.
- Bulls need a clear break of 61.8% Fibonacci retracement to retake control.
- An impending bull cross on MACD teases buyers but bearish channel limits upside momentum.
Palladium (XPD/USD) takes offers to renew intraday low around $2,030, printing the first daily loss in four heading into Wednesday’s European session.
In doing so, the commodity prices fade the previous day’s 10-DMA breakout inside a one-month-old descending trend channel
It’s worth noting, however, that the looming bull cross on the MACD hints challenges the XPD/USD downside past the 10-DMA level surrounding $2,000.
Also acting as the key downside barrier is a falling trend line from February 11, near $1,875, as well as the lower line of the stated channel, near $1,815.
Alternatively, a clear upside break of the monthly channel’s resistance line, close to $2,070 by the press time, won’t be an open invitation to the palladium buyers.
The reason is the 61.8% Fibonacci retracement of the XPD/USD’s December 2021 to March 2022 upside, near $2,265.
Overall, palladium sellers seem to have run out of steam but the bulls haven’t gained conviction and hence prices remain lackluster.
Palladium: Daily chart
Trend: Further weakness expected