EUR/USD H4 Descending Triangle: Short Setup w/ 1:4RR

The EUR/USD is currently trading at 1.04306, showing a slight decline of -0.14% (-0.00148). The pair is forming a descending triangle pattern, which is typically a continuation pattern in a downward trend.

Key Technical Levels:
- Resistance: 1.04659 (Key resistance level)
- Support: 1.03197 (Current support level/PWL)
- Value Area: Marked on the chart showing price consolidation

Pattern Analysis:
The price action has formed a clear descending triangle with:
- A flat bottom around 1.03197
- Declining tops, creating a downward sloping resistance line
- Decreasing volume during consolidation (visible in the volume bars below)

Indicator Analysis:
1. Volume Profile shows:
- Major value area between 1.04475 and 1.03197
- Point of Control (POC) appears to be around 1.04423
- Decreasing volume suggesting potential breakout incoming

Price Structure:
- Currently trading below the PWH (Previous Week High)
- Trading within the value area
- Showing signs of bearish momentum with lower highs

Short-term Outlook:
Given the descending triangle formation and the position of key technical levels, the setup appears bearish. The following factors support this view:
1. Price is testing the lower boundary of the value area
2. Declining volume during consolidation
3. Unable to break above 1.04659 resistance
4. Formation of lower highs

Trade Setup Parameters:
- Entry Price: 1.04379
- Stop Loss: 1.04659 (280 ticks)
- Take Profit: 1.03197 (1182 ticks)
- Risk: 1.00%
- Position Size: 0.5 lots
- Account Size: 100,000

Risk/Reward Ratio:
The setup offers approximately a 1:4.2 risk-to-reward ratio, which is favorable for a technical setup.

Key Levels to Watch:
- Break below 1.03197 could accelerate selling pressure
- Break above 1.04659 would invalidate the bearish setup
- SSL levels at 1.03198 and 1.04225 acting as additional reference points

Caution:
Traders should be aware of:
- Potential weekend gaps as we're near market close
- Any fundamental catalysts that could affect EUR/USD
- The need for proper position sizing as indicated in the setup

This analysis suggests a bearish bias with clear invalidation levels and a favorable risk-reward ratio. However, proper risk management and confirmation of breakout direction are essential before entering any position.