Commodity Market


Natural Gas Wave Analysis – 17 January, 2019
Natural Gas Wave Analysis – 17 January, 2019
Natural Gas recently broke the strong, multi-month support level 2.078 (low of the previous impulse wave (i), which has been reversing the price from last August).
Wheat Wave Analysis – 13 January, 2019
Wheat Wave Analysis – 13 January, 2019
Wheat recently reversed down from the resistance area lying between the resistance level 566.50 (top of the previous Shooting Star from December) and the upper daily Bollinger Band.
Cotton Wave Analysis – 10 Janaury, 2019
Cotton Wave Analysis – 10 Janaury, 2019
Cotton recently broke the resistance area lying at the intersection of the strong round resistance level 70.00 (monthly high from June) and the resistance trendline of the daily up c...
Sugar Wave Analysis – 06 Janaury, 2019
Sugar Wave Analysis – 06 Janaury, 2019
Sugar recently reversed up from the support area lying between the support level 13.20, support trendline of the daily up channel from October, lower daily Bollinger Band and 38.2% F...
Wheat Wave Analysis – 30 December, 2019
Wheat Wave Analysis – 30 December, 2019
Wheat recently broke above the multi-month resistance level 554.00 (which stopped the sharp uptrend at the end of June and also earlier this month, as can be seen below).
Cocoa Wave Analysis – 27 December, 2019
Cocoa Wave Analysis – 27 December, 2019
Cocoa recently reversed up from the support area lying between the support level 2400.00 (which has been reversing the price from October), lower daily Bollinger Band and the 50% Fib...
Natural Gas Wave Analysis – 26 December, 2019
Natural Gas Wave Analysis – 26 December, 2019
Natural Gas recently reversed up from the support area lying between the pivotal support level 2.166 (which has been reversing the price from October) and the lower daily Bollinger B...
Cotton Wave Analysis – 23 December, 2019
Cotton Wave Analysis – 23 December, 2019
Cotton recently broke the resistance zone lying between the resistance level 67.00 (which has been reversing the price from June) and the 50% Fibonacci correction of the previous dow...
Sugar Wave Analysis – 13 December, 2019
Sugar Wave Analysis – 13 December, 2019
Sugar recently broke through the multi-month resistance level 13.40 (which stopped the previous ABC correction 2 in February).
Natural Gas Wave Analysis – 11 December, 2019
Natural Gas Wave Analysis – 11 December, 2019
Natural Gas recently reversed up from the support area lying between the key support level 2,150 (which reversed earlier waves (a) and (c) in August) and the lower daily Bollinger Band.

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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