Gold Price Analysis: XAU/USD on the verge of break to the $1,950s Volume Cluster

• Gold bears target the Volume Cluster in the $1,950s.
• Bears seek a bearish extension towards the $1,920s.

Gold has been idlling the Volume Point of Control (VPC) on the hourly chart in a period of consolidation following a break to the downside since the Federal Reserve meeting on Wednesday.

As it stands, the price is caught in a technical channel on the hourly chart from a where a breakout could result in a spike one way or the other.

The current environment is bullish while price trades above the VPC and the 21-hour moving average, testing the resistance of the channel. 

1HR chart

The price is above the 21 moving average and MACD is headed north.

The bulls are bidding the price up from the Volume Point of Control and on a break of the channel resistance, the Volume Cluster will soak up the bids in the $1,950s.

Either way, traders can take advantage of limit orders to either buy or sell on a breakout at either the support or resistance structure of the channel on a lower time frame, such as the 15-min chart.