Bear flag offers potential entry with attractive risk-reward

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After depreciating steeply between 28 Dec 2023 and 3 January 2024, the EURUSD rebounded and has been consolidating in a rising channel. On the 4-hour chart, we observe a bear flag formation that is identified by a steep downward price movement followed by a rising channel.

Should prices rise to 1.1008 zone (R1), it would serve as an attractive entry for a short position to capture the large bearish continuation move of the bear flag.

Sell Entry: 1.1008 (R1)
TP1: 1.0894 (S2)
TP2: 1.0829 (S3)
SL: 1.1041