Commodity Market


Soy Wave Analysis – 12 November, 2019
Soy Wave Analysis – 12 November, 2019
Soy recently corrected down and is currently trading close to support area lying between the support level 917.00 (low of wave (ii)) and the 50% Fibonacci correction of the previous ...
Platinum Wave Analysis – 08 November, 2019
Platinum Wave Analysis – 08 November, 2019
Platinum recently broke the support zone lying between the round support level 900.00 (former resistance from October) and the 50% Fibonacci correction of the previous upward impulse...
Brent Crude Oil Wave Analysis – 05 November, 2019
Brent Crude Oil Wave Analysis – 05 November, 2019
Brent Crude Oil recently broke above the key resistance level 61.90 (top of the previous impulse wave (i) from the end of October).
NZDUSD Wave Analysis – 04 November, 2019
NZDUSD Wave Analysis – 04 November, 2019
NZDUSD recently reversed down from resistance area lying between the key resistance level 0.6440 (monthly high from September), upper daily Bollinger Band and the 38.2% Fibonacci cor...
Gold Wave Analysis – 31 October, 2019
Gold Wave Analysis – 31 October, 2019
Gold recently reversed up from support area lying between the key support level 1480.00 (which has been reversing the price from September), lower daily Bollinger Band and the 50% Fi...
Natural Gas Wave Analysis – 29 October, 2019
Natural Gas Wave Analysis – 29 October, 2019
Natural Gas recently broke resistance area lying between the resistance level 2.500, resistance trendline of the daily up channel from the start of October and the 61.8% Fibonacci co...
Coffee Wave Analysis – 28 October, 2019
Coffee Wave Analysis – 28 October, 2019
Coffee previously reversed up sharply from the support area lying between round level 90.00 (which also reversed the price in May) and the lower daily Bollinger Band.
Soy Wave Analysis – 23 October, 2019
Soy Wave Analysis – 23 October, 2019
Soy recently reversed down from the resistance area lying between the resistance level 944.00 (which stopped the previous impulse wave (i)) and the upper daily Bollinger Band.
Natural Gas Wave Analysis – 22 October, 2019
Natural Gas Wave Analysis – 22 October, 2019
Natural Gas continues to fall inside the medium-term impulse wave (3) – which started recently from the resistance zone lying between the resistance level 2.375 (top of wave 4)...
Sugar Wave Analysis – 21 October, 2019
Sugar Wave Analysis – 21 October, 2019
Sugar continues to fall inside the short-term impulse wave 3 which started earlier from the powerful resistance level 12.80 (which has been reversing the price from March).

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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