Palladium Price Analysis: XPD/USD extends pullback from June’s low towards 10-DMA

• Palladium drops for second consecutive day, holds lower ground of late.
• Downbeat Momentum line fails to entertain bears, 200-DMA, six-week-old resistance line add to the upside filters.

Palladium (XPD/USD) remains on the back foot around $2,425, down 0.45% intraday ahead of Thursday’s European session.

The precious metal took a U-turn from June’s low the previous day, extending the losses so far during Thursday, amid a downbeat Momentum line.

Hence, the quote’s fall to the 10-DMA surrounding $2,400 becomes imminent. However, any further declines will be challenged by the $2,300 round figure and monthly low of $2,263.

Meanwhile, a daily closing past $2,461, comprising June’s bottom, enables the XPD/USD buyers to aim for a 38.2% Fibonacci retracement level of May-August fall, around $2,550.

It should be noted, however, that a confluence of 200-DMA and a descending trend line from July 12, around $2,575-80, becomes a tough nut to crack for the palladium buyers afterward.

Overall, XPD/USD remains pressured but cautions market sentiment and downbeat Momentum challenges the bears of late.

Palladium: Daily chart

Trend: Further weakness expected