Commodity Market


Natural gas Wave Analysis – 26 May, 2022
Natural gas Wave Analysis – 26 May, 2022
The breakout of the resistance level 9.0000 continues the active short-term impulse wave 5 of the multi-month upward impulse wave (C) from December.
Natural gas Wave Analysis – 20 January, 2022
Natural gas Wave Analysis – 20 January, 2022
Natural gas recently reversed down from the resistance area set between the resistance level 4.4, upper daily Bollinger Band and the 50% Fibonacci correction of the downward price im...
Wheat Wave Analysis – 13 October, 2021
Wheat Wave Analysis – 13 October, 2021
Wheat continues to fall inside the intermediate correction (2), which started earlier from the resistance zone lying between the key resistance level 760.00 (which has been reversing...
Soy Wave Analysis – 12 October, 2021
Soy Wave Analysis – 12 October, 2021
Soy under the bearish pressure after breaking the pivotal support level 1235.00 (which stopped the previous minor impulse wave (i) at the start of October).
Natural gas Wave Analysis – 8 September, 2021
Natural gas Wave Analysis – 8 September, 2021
Natural gas earlier broke through the major resistance area located between the multi-year resistance level 4.895 (which started the sharp downtrend at the end of 2018) and the resis...
Natural gas Wave Analysis – 27 August, 2021
Natural gas Wave Analysis – 27 August, 2021
Natural gas continues to rise after the price broke above the key resistance level 4.2000 (which stopped the pervious sharp impulse wave 1 at the start of August).
Corn Wave Analysis – 26 August, 2021
Corn Wave Analysis – 26 August, 2021
Corn recently reversed up from the support area located between the key multi-month support level 535,00 (which has been steadily reversing the price from February), and the lower da...
Cotton Wave Analysis – 14 July, 2021
Cotton Wave Analysis – 14 July, 2021
The breakout of the resistance level 87,45 coincided with the breakout of the 61,8/% Fibonacci correction of the ABC correction (2) from April – which accelerated the active mi...
Wheat Wave Analysis – 2 July, 20211
Wheat Wave Analysis – 2 July, 20211
Wheat recently reversed down from the resistance area lying between the round resistance level 700.00, upper daily Bollinger Band and the 50% Fibonacci correction of the downward imp...
Natural gas Wave Analysis – 25 June, 2021
Natural gas Wave Analysis – 25 June, 2021
Natural gas previously broke through the major long-term resistance level 3.435, which stopped the previous sharp uptrend in October of 2020 as can be seen below.

The influence of commodity analysis on Forex trade

How investor can realize a profit on the raw materials market, despite high capital requirements and other difficulties when dealing with commodities? The answer is simple - to make investments via the foreign exchange market. Like other financial markets, the Forex market has a direct communication to other types of investment assets. This communication could be the direct one (when both assets enhance), or reverse (when one assets grows in price, the other falls). Such relationships help investors to obtain admittance to other markets, and are of great help when analyzing trends on the world market.

Types of Basic Commodities

The basic commodities on the raw materials market are the class of assets that includes itself raw materials and resources supplied in an ordinary way and available for an exchange. These examples include:   

  • Metals, such as iron ore, aluminum, silver or gold
  • Foodstuffs, such as wheat, rice, sugar, salt, coffee beans and soya beans
  • Energy commodities, such as oil, coal, natural gas and electricity.

On the actual commodity market the bulk of transactions go to trade futures – the contracts, time of delivery of which occurs in a certain period in the future. The benefit of the raw materials market participants consists of the exchange gain between buying price and futures contract selling. This feature offers promising opportunities for income acquisition, making the commodity market instruments attractive to private traders. Commodity prices on the raw materials market are usually specified in U.S. dollars. If the U.S. dollar is not the currency of your trading account, you should be aware that exchange rates fluctuations will affect your results.

The basic commodities could be traded with many brokers by the instrumentality of contracts for difference (CFD). 

Commodity Market and the Exchange Rates

The economics of many countries are heavily dependent on basic commodities exports, for example, Australia, Brazil and Canada. Value of currency in these countries is often influenced by commodity prices.

For example, Australia is an important producer of gold. If the price of the gold increases, appears the need for more Australian dollars amount in order to purchase it, and thus, the price of the Australian dollar will increase.

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