Commodity Market


Corn Wave Analysis – 24 June, 2019
Corn Wave Analysis – 24 June, 2019

Corn recently reversed up from the support area lying between the key support level 440.00 (former multi-month resistance from the middle of 2016).

Cotton Wave Analysis – 21 June, 2019
Cotton Wave Analysis – 21 June, 2019

Cotton recently broke sharply below the key support level 64.80 (which stopped the previous impulse waves (1) and 1 – as can be seen below).

Cocoa Wave Analysis – 19 June, 2019
Cocoa Wave Analysis – 19 June, 2019

Cocoa recently reversed up sharply from the combined support area lying between the key support level 2462 (former resistance from April and May) and the 38.2% Fibonacci correction o...

Wheat broke key resistance level 109.60
Wheat broke key resistance level 109.60

Wheat recently broke the key resistance level 109.60 – which stopped the previous sharp waves 2 and (1) – as can be seen below.

Corn Wave Analysis – 12 June, 2019
Corn Wave Analysis – 12 June, 2019

Corn recently reversed up sharply from the powerful support level 410.00 (former multi-month high from May of 2018).

Cotton Wave Analysis – 11 June, 2019
Cotton Wave Analysis – 11 June, 2019

Cotton recently reversed down from the resistance area lying between the key resistance level 69.40 (former monthly low from February) and the upper daily Bollinger Band.

Gold Wave Analysis – 10 June, 2019
Gold Wave Analysis – 10 June, 2019

Gold recently reversed down from the resistance area lying between the key resistance level 1346.00 (which stopped the earlier extended wave (a) in the middle of February) and the up...

Natural Gas broke key support area
Natural Gas broke key support area

Natural Gas recently broke through the key support area lying between the support levels 2.538 and 2.687 (which has been repeatedly reversing the price from October of 2016).

Sugar Wave Analysis – 4 June, 2019
Sugar Wave Analysis – 4 June, 2019

Sugar recently reversed up from the support area lying between the key support level 11.75 (former monthly low from January), lower daily Bollinger Band and the 61.8% Fibonacci corre...

Wheat Wave Analysis – 29 May, 2019
Wheat Wave Analysis – 29 May, 2019

Wheat opened today with the runaway upward gap breaking through the resistance zone lying at the intersection of the resistance levels – 50% Fibonacci correction of the weekly ...


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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