[VIDEO] Inflation Expectations cause rally in commodity currencies

AUD/USD broke above the flag pattern and is moving toward the flag target

Uptrend 1

Michigan Consumer Sentiment was released earlier today, and it showed that consumers were more worried about the economy in February as compared to January.  However, the big surprise was the increase in inflation expectations.  As a result, commodity currencies, such as the Aussie, climbed higher.

Looking at the AUD/USD, price broke above the flag pattern and is moving toward the flag target, near 0.8400!  However, price must first push through resistance at the top of the flag near 0.7818.  Support is near the top trendline of the flag near 0.7650.

Note that with the Chinese New Year next week, as well as holidays in New Zealand and the US on Monday, trading may be light and slow. 

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