Commodity Market


Cotton Wave Analysis – 4 May, 2019
Cotton Wave Analysis – 4 May, 2019
Cotton recently reversed down from the resistance area lying between the resistance level 57.20 (which stopped the sharp downtrend in August of 2019), upper daily Bollinger Band and ...
Soy Wave Analysis – 23 April, 2019
Soy Wave Analysis – 23 April, 2019
Soy reverently reversed up sharply from the support area lying between the long-term support level 820.0 (which has been reversing the price from 2019), lower daily Bollinger Band an...
Wheat Wave Analysis – 20 April, 2019
Wheat Wave Analysis – 20 April, 2019
Wheat continues to rise after the earlier breakout of the resistance trendline of the sharp daily down channel from March (which encloses the previous ABC correction (2)).
Soy Wave Analysis – 15 April, 2019
Soy Wave Analysis – 15 April, 2019
Soy recently broke the support area lying between the support level 850.00 (low of the earlier wave A) and the 61.8% Fibonacci correction of the previous upward impulse (1) from March.
WTI Wave Analysis – 15 April, 2019
WTI Wave Analysis – 15 April, 2019
WTI today reversed up from the support area lying between the key support level 19.65 (which stopped the previous impulse waves iii and (iii)) and the lower daily Bollinger Band.
Oil prices see gentle lift from historic OPEC+ deal
Oil prices see gentle lift from historic OPEC+ deal
In the hours before markets began trading for the week, the OPEC+ alliance struck an unprecedented agreement to remove 9.7 million barrels a day from global output, starting May 1.
Oil left joyless on Good Friday, Mexico waves off OPEC+ deal
Oil left joyless on Good Friday, Mexico waves off OPEC+ deal
Brent fell by 4.1 percent and is struggling to keep its head above the psychological $30 level, while WTI edged closer to the $20 line plunging 9.3 per cent, as markets expressed the...
Natural Gas Wave Analysis – 10 April, 2019
Natural Gas Wave Analysis – 10 April, 2019
Natural Gas recently reversed down from the round resistance level 2,000, intersecting with the 100-day moving average, upper daily Bollinger Band and the 38.2% Fibonacci correction ...
Sugar Wave Analysis – 08 April, 2019
Sugar Wave Analysis – 08 April, 2019
Sugar recently reversed down from the resistance zone located between the key resistance level 10.70 (former multi-month support from September of 2019) and the 50% Fibonacci retrace...
Natural gas Wave Analysis – 07 April, 2019
Natural gas Wave Analysis – 07 April, 2019
Natural gas recently broke above the resistance area located between the key resistance level 1.732 (which reversed earlier waves (ii) and (a)) intersecting with the 38.2% Fibonacci ...

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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