Palladium Price Analysis: XPD/USD looks set for more gains above $2,600

• Palladium prices extend previous day’s bounce off one-month low.
• Sustained U-turn from 200-day EMA, 50% Fibonacci retracement breakout favor bulls.
• Key Fibonacci retracement levels, June low also challenge bulls.

Palladium (XPD/USD) stays bid around $2,615, up 0.32% intraday, as European traders brace for Wednesday’s bell.

The precious metal bounced off 200-day EMA the previous day to snap a five-day downtrend. The following recovery moves cross 50% Fibonacci retracement of January-May upside to keep the buyers hopeful.

That said, the current up-moves aim for 38.2% Fibonacci retracement surrounding the $2,700 threshold. Though, May’s low near $2,730 and March’s top near $2,760 could challenge the XPD/USD bulls afterward.

Meanwhile, a daily closing below the 200-day EMA level of $2,565 will recall Palladium sellers targeting 61.8% Fibonacci retracement and June’s bottom, respectively around $2,508 and $2,460.

Also acting as the downside filter is the early January tops near $2,530.

Palladium: Daily chart

Trend: Further recovery expected