Palladium Price Analysis: Oversold RSI challenges XPD/USD sellers near yearly support

• Palladium remains pressured around eight-month low after the biggest daily slump since mid-June.
• A horizontal area from last September can trigger the rebound targeting 61.8% Fibonacci retracement.
• August lows add to the upside filters, bears aim for May 2020 peak below $2,185.

Palladium (XPD/USD) consolidates the heaviest daily drop in three months around $2,224, down 0.10% intraday ahead of the key Thursday’s European session.

The metal’s heavy south-run dragged it below the 61.8% Fibonacci retracement (Fibo.) of May 2020-21 upside. However, oversold RSI conditions challenge the quote's further weakness.

Also probing the Palladium bears is a horizontal area comprising multiple lows marked since September 2020, near $2,185-90.

It should be noted, however, that the anticipated corrective pullback not only needs to cross the key Fibo. level surrounding $2,425 but also jump back beyond the last month’s low near $2,265 to convince short-term XPD/USD buyers.

Overall, palladium is near to crucial support but rebound remains doubtful.

Palladium: Daily chart

Trend: Corrective pullback expected