Commodity Market


Sugar Wave Analysis – 17 September, 2019
Sugar Wave Analysis – 17 September, 2019
Sugar recently reversed down with the daily Falling Star from the resistance zone lying between the resistance level 11.25 (former strong support from August), upper resistance ...
Silver Wave Analysis – 16 September, 2019
Silver Wave Analysis – 16 September, 2019
Silver recently reversed up from the support zone lying between the support level 17.50 (former pivotal resistance from August), the support trendline from July and the 38.2% Fibonac...
Cotton Wave Analysis – 13 September, 2019
Cotton Wave Analysis – 13 September, 2019
Cotton recently reversed up from the support zone lying between the long-term support level 56.70 (which has been reversing the price from the start of 2015) and the lower weekly Bol...
Platinum Wave Analysis – 12 September, 2019
Platinum Wave Analysis – 12 September, 2019
Platinum recently reversed up from the support zone lying between the key support level 931.00 (low of the previous wave (a)), upper trendline of the daily up channel from June and t...
Palladium Wave Analysis – 11 September, 2019
Palladium Wave Analysis – 11 September, 2019
Palladium recently broke the resistance level 1560.00 (which reversed the price at the start of September with the daily Evening Star – and also at the end of July).
Copper Wave Analysis – 10 September, 2019
Copper Wave Analysis – 10 September, 2019
Copper recently reversed down from the resistance area lying between the key resistance level 264.00 (former monthly high from April), upper daily Bollinger Band, 100-day moving aver...
Sugar Wave Analysis – 05 September, 2019
Sugar Wave Analysis – 05 September, 2019
Sugar continues to fall inside the short-term impulse wave (iii) – which previously broke through the key, multi-multi-month support level 11.35.
Natural Gas Wave Analysis – 04 September, 2019
Natural Gas Wave Analysis – 04 September, 2019
Natural Gas recently broke the resistance area lying between the resistance level 2.340, 100-day moving average and the 50% Fibonacci correction of the previous downward impulse from...
Palladium Wave Analysis – 02 September, 2019
Palladium Wave Analysis – 02 September, 2019
Palladium recently broke the resistance area lying between the round resistance level 1.5000 (previous upward target) and the 50% Fibonacci correction of the previous downward impuls...
Platinum Wave Analysis – 29 August, 2019
Platinum Wave Analysis – 29 August, 2019
Platinum recently broke sharply through the resistance area lying between the strong resistance level 915.00 (multi-month high from April) and the resistance trendline of the wide da...

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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