Palladium Price Analysis: XPD/USD justifies Wednesday’s Doji to defend $2,600

Palladium snaps three-day downside, recovers from weekly bottom.
Bulls track gold prices amid downbeat DXY performance.
US GDP, covid updates eyed for fresh impulse.
Palladium (XPD/USD) rebounds from the weekly top, up 0.34% intraday around $2,615, before Thursday’s European session. the valuable metal dropped during the last three days before recently tracking gold prices, also taking clues from the US dollar, to portray the corrective pullback.

With the Fed’s refrain from speaking much on the tapering and US policymakers’ initial voting to debate another stimulus, US Dollar Index (DXY) dropped to rock bottom since July 13, down for the fourth consecutive day. Also weighing on the greenback might be an upbeat earnings season and relatively stronger covid conditions than Australia, Europe and therefore the UK.

That said, the DXY prints 0.12% losses on each day by the press time, tracking the US Treasury yields and S&P 500 Futures to the south.

It’s worth noting that the US dollar’s weakness directs the safe-haven flows to the gold as covid conditions in Asia-Pacific worsens.

Amid these plays, gold prices refresh one-week high, up 0.45% around $1,815 at the time of the press, an equivalent favors other precious metals, namely silver and palladium to select up bids.

Moving on, today’s presentation of the US Q2 GDP, expected 8.6% annualized versus 6.4% prior, could offer fresh direction to the XPD/USD prices as any longer strengthening of the expansion figures could exert additional downside pressure on the DXY and favor metals. Alternatively, a surprise weakness could put a floor under the US dollar declines and trigger the commodity’s pullback.

Technical analysis
Palladium battles the previous support line from June 18 around $2,620 after posting a trend-reversal suggesting candlestick the previous day. Also challenging the bulls may be a downward sloping resistance line from July 12, near $2,655. On the contrary, 200-DMA near $2,550 becomes a robust support for XPD/USD bears to overcome before retaking the controls.

Today last price 2615.3
Today Daily Change 8.80
Today Daily Change % 0.34%
Today daily open 2606.5

Daily SMA20 2725.44
Daily SMA50 2734.14
Daily SMA100 2750.79
Daily SMA200 2551.29

Previous Daily High 2623.84
Previous Daily Low 2589.94
Previous Weekly High 2722.83
Previous Weekly Low 2571.07
Previous Monthly High 2872.28
Previous Monthly Low 2461.72
Daily Fibonacci 38.2% 2602.89
Daily Fibonacci 61.8% 2610.89
Daily Pivot Point S1 2589.68
Daily Pivot Point S2 2572.86
Daily Pivot Point S3 2555.78
Daily Pivot Point R1 2623.58
Daily Pivot Point R2 2640.66
Daily Pivot Point R3 2657.48


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