19.02.202116:45 Forex Analysis & Reviews: Analysis for EUR/USD on February 19. The US returns to Paris climate agreement

The wave marking of the 4-hour chart again looks quite convincing, and the increase in quotes during the past day fully confirms the hypothesis about the beginning of building a new upward section of the trend and its wave 3. Thus, I believe that the increase in quotes will continue with the goals located above the 22nd figure. At the same time, the recent increase is quite brisk and cheerful. At this rate, the instrument will reach the target levels within a couple of days. In this case, I will expect either a serious elongation of the assumed wave 3 and the transformation of the entire trend section into a five-wave one, or the construction of an ascending set of waves will soon be completed. In the second case, the section of the trend that starts on February 5 will be considered complete, and I will expect to build a new triple down. In any case, in the coming days, I expect a further increase in the quotes of the instrument. In this regard, I recommend that traders stay in the purchases, as I recommended earlier. Let me remind you that an unsuccessful attempt to break through the 61.8% Fibonacci mark, built on wave 1, is a fairly strong signal for buyers.

Meanwhile, the US has officially returned to the Paris Climate Agreement. The country left it under President Trump. Let me remind you that the essence of the agreement is to maintain the global average temperature at the level of "2 degrees lower than in pre-industrial times". In other words, avoid global warming. Trump also believed that the US participation in this agreement is unprofitable for them, as it can lead to job cuts, wages, and factory closures. The Joe Biden administration seems to have a different view, as one of the first executive orders signed by a Democratic president was a return to the Paris Agreement. In America, the debate continues about whether the country needs this agreement. Republicans fully support Trump's opinion. John Barrasso of the Senate Energy Committee believes that this agreement can not stop global warming, while it will increase the cost of Americans for electricity. However, the world community warmly welcomed Biden's initiative and hopes that the country will continue to work towards reducing greenhouse gas emissions.

There were few economic reports on Friday. For the Eurozone, the report on business activity in the service sector was of great importance, since this indicator has been in the "negative" area for several months. However, at the end of February, nothing changed, and it remained below the mark of 50, even falling compared to January. The report on business activity in the manufacturing sector, on the contrary, increased significantly to a value of 57.7. However, this did not have any effect on the euro/dollar instrument. As I said above, even at night, the increase in quotes resumed and nothing changed during the day. Therefore, the markets did not attach any importance to the published data.

The wave marking of the upward section of the trend still has a fully completed five-wave form. But the section of the trend that began its construction immediately after it already looks complete. The entire January-February section of the trend took the form a-b-c. If this assumption is correct, then now at least three waves will follow up.