Palladium Price Analysis: XPD/USD retreats from two-month top but not out of the woods

• Palladium bulls take a breather around the highest levels in nine weeks.
• Sustained trading beyond 100-DMA, bullish MACD signals favor buyers.
• Further upside eyes horizontal area from October, short-term sellers aim for December’s top.

Palladium (XPD/USD) pauses a four-day uptrend around $2,135, down 0.30% intraday heading into Tuesday’s European session.

In doing so, the precious metal eases from a multi-day high, flashed the previous day, but stays on the bull’s radar.

Bullish bias over the metal remains intact despite the latest pullback as the quote stays beyond the 100-DMA level of $1,936, as well as December’s high near $1,998. Also supporting the trend are the bullish MACD signals.

That said, the latest weakness may aim for a 38.2% Fibonacci retracement level of the May-December 2021 downside, near $2,115.

On the contrary, further XPD/USD advances will be challenged by a three-month-long horizontal area of around $2,180.

During the quote’s run-up beyond $2,180, the 200-DMA and a descending trend line from May, respectively around $2,215 and $2,345, will be crucial to watch.

Palladium: Daily chart

Trend: Bullish