Announcements made by the Western countries over the weekend have sent shockwaves across the financial markets at the launch of Monday's trade. The West decided on far-reaching and severe sanctions targeting the Russian financial sector. The Russian ruble takes a massive hit, dropping around 30% against the US dollar and euro today. However, big moves can also be spotted on the commodity markets, as investors fear that harsh sanctions on Russia may lead to retaliation in the form of an export ban. As Russia is one of the key palladium suppliers to the world, the price of this precious metal rallied. Palladium traded over 5% higher at one point but has given back part of the gains already.
Taking a look at PALLADIUM from a technical point of view, we can see that sentiment on this market changed at the end of January. Price managed to break above a key resistance in the $2,000 area and continued to rise until the $2,245 area was broken as well. Price is currently attempting to break above the resistance zone in the $2,520 area, that was defended by sellers last week. In case price breaks above this zone, an upward move towards as high as $2,900 cannot be ruled out.
Source: xStation5
