Palladium Price Analysis: XPD/USD stays defensive around $2,600 key support

• Palladium snaps two-day downtrend, stays pressured of late.
• Bearish MACD, failures to cross 100-DMA keep sellers hopeful.
• 200-DMA, 61.8% Fibonacci retracement and June’s low add to the extra downside filters.

Palladium (XPD/USD) fades early Asian bounce off weekly low, up 0.10% intraday taking rounds to $2,615, ahead of Wednesday’s Asian session.

In doing so, the commodity seesaws around 50% Fibonacci retracement (Fibo.) of January-May upside and an ascending trend line from June 18.

With the bearish MACD signals firming below 100-DMA, coupled with failures to keep the latest rebound, palladium bears are likely to retake the controls.

However, a daily closing below the $2600 round figure becomes necessary ahead of targeting the 200-DMA level of $2,551.

Also acting as the downside filters are 61.8% Fibo. and the last month’s bottom, respectively around $2,510 and $2,460.

Alternatively, recovery moves remain elusive below the 100-DMA level of $2,750 but the return of $2665 and the $2,700 can’t be ruled out.

Overall, XPD/USD teases the bears ahead of the US Federal Open Market Committee (FOMC).

Palladium: Daily chart

Trend: Further weakness expected