Palladium Price Analysis: XPD/USD bulls challenge 20-day SMA

• Palladium notches higher in the early European session on Thursday.
• Bulls hold the key support area near $2,620, making it a crucial level to trade.
• Momentum oscillator remained in oversold zone with a neutral stance.

Palladium (XPD/USD) edges higher on Thursday following the previous session’s decline on Thursday. The metal hovers in a very narrow trade band with an underlying bullish sentiment.

At the time of writing, XPD/USD is trading at, $2,626, up 0.09% for the day.

Palladium four-hour chart

On the daily chart, after making the high at $2,882.78 on July 6, XPD/USD has been under constant selling pressure. The descending trendline from the top acts as a strong resistance barrier for the bulls.

Being said, if prices attempt to break intraday high, it could meet the 20-day Simple Moving Average (SMA) at $2,640 as the first upside target.

A daily close above the mentioned level will coincide with the breaking of the bearish sloping line adding more optimism for XPD/USD bulls.

Bulls will attempt to recapture the $2,655 horizontal resistance level followed by the high of August 3 at $2,683.29.

Alternatively, if price moves lower, it could retrace back to the $2,610 horizontal support level.

Any downtick in the Moving Average Convergence Divergence (MACD) would amplify the selling pressure toward the low of August 10 at $2,588.

The next area of support would be the $2,575 horizontal support level.

Palladium additional levels