EURUSD Drops After Breakout?

After a significant drop, price started to rest and retrace. Currently, as you see in the 4H chart, price is in an ascending parallel channel.

The main trend is a downtrend and price is facing a bearish pressure. On the other hand, it is approaching to the strong support level around 1.048 which is an old level.

Since we are in a downtrend, if price breaks the yellow support level and closes a bearish candle below this level, I expect a drop on EURUSD around 1.037

Otherwise, if price gets rejected from this level, it will push to the upside but we should wait for the upside breakout on the last high to enter buy position.