One-month risk reversal (RR) on Palladium (XPD/USD), a measure of the spread between call and put prices, prints a four-day downtrend heading into Tuesday’s European session, according to data source Reuters. 

A call option gives the holder the right but not obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option represents a right to sell. 

That said, the daily difference between them drops to -0.010 after three days of a downtrend. Additionally portraying the bearish bias could be the weekly print that eases towards a third red mark.

The latest XPD/USD price moves seem to take clues from the RR as the commodity drops over 2.0% to $1,930 while reversing from a five-week top.