Commodity Market


Copper Wave Analysis – 19 March, 2019
Copper Wave Analysis – 19 March, 2019

Copper recently reversed up from the support area lying between the key support level 290.00 (former powerful resistance level from the end of September) and the lower daily Bollinge...

Soy Wave Analysis – 15 March, 2019
Soy Wave Analysis – 15 March, 2019

Soy recently reversed up from the support area lying between the pivotal support level 890.00 (which has been reversing the price from the middle of January) and the 38.2% Fibonacci ...

Cotton Wave Analysis – 13 March, 2019
Cotton Wave Analysis – 13 March, 2019

Cotton recently broke the key resistance level 74.8 (which has been reversing the price from the middle of February) – intersecting with the resistance trendline from July.

Soy Wave Analysis – 11 March, 2019
Soy Wave Analysis – 11 March, 2019

Soy continues to fall inside the intermediate impulse wave (3), which started earlier from the resistance area lying between the strong resistance level 930.00 (which has been steadi...

Cotton Wave Analysis – 07 March, 2019
Cotton Wave Analysis – 07 March, 2019

Cotton recently reversed down from the resistance area lying between the key resistance level 75.30 (former multi-month support from September) and the 50% Fibonacci correction of th...

Sugar Wave Analysis – 06 March, 2019
Sugar Wave Analysis – 06 March, 2019

Sugar today broke through the key support level 12.40 (which stopped the previous wave (b) at the end of January).

Platinum Wave Analysis – 27 February, 2019
Platinum Wave Analysis – 27 February, 2019

Platinum recently broke through the key resistance level 858.00 (top of wave 2 from the end of November) – which was preceded by the breakout of resistance level 834.00 (top of...

Corn Wave Analysis – 26 February, 2019
Corn Wave Analysis – 26 February, 2019

Corn recently broke sharply through the support area lying between the key support level 372.00 (which has been steadily reversing the price from the end of December) and the 50% Fib...

Wheat Wave Analysis – 21 February, 2019
Wheat Wave Analysis – 21 February, 2019

Wheat today reversed up from the support area lying between the key long-term support level 473.00 (which has been reversing the price from the middle of last year, as can be seen be...

Corn Wave Analysis – 13 February, 2019
Corn Wave Analysis – 13 February, 2019

Corn recently reversed up from the support area lying between the key support level 372.00 (which has been reversing the price from the end of December), lower daily Bollinger Band a...


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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