We present a free-space interferometer to observe two-particle interference of a pair of atoms with entangled momenta. The source of atom pairs is a Bose--Einstein condensate subject to a dynamical instability, and the interferometer is realized using Bragg diffraction on optical lattices, in the spirit of our recent Hong--Ou--Mandel experiment. We report an observation consistent with an entangled state at the input of the interferometer. We explain how our current setup can be extended to enable a test of a Bell inequality on momentum observables.