Palladium Price Analysis: XPD/USD bulls fade rejection near monthly horizontal resistance

• Palladium consolidates July’s heaviest daily gains, depressed near intraday low.
• Descending Momentum line favors the pullback towards two-week-old support line.
• Late May’s peak, 200-SMA act as extra filters to follow.

Palladium bulls step back from the key horizontal hurdle, weighing on the commodity prices, during early Thursday. That said, the precious metal prints 0.53% intraday losses to $2,839 ahead of the European session.

With the downward sloping Momentum line backing the metal’s U-turn from a one-month-old horizontal resistance, palladium prices are likely to decline further.

In doing so, the sellers can aim for ascending support line from June 22, near $2,805. However, any further downside will need a sustained break of the $2,800 threshold before targeting the 200-SMA level of $2,749.

Meanwhile, recovery moves require successful trading beyond the $2,875 hurdle to direct XPD/USD bulls towards the $2,900 round figure.

In a case where the commodity rallies beyond the $2,900 hurdle, the late May’s swing high near $2,945 and the $3,000 psychological magnet will be the key to follow.

Palladium: Four-hour chart

Trend: Pullback expected