That is the first serious support on the way down as last week's lows are located here. If bears push the pair below the 1.24 level, stop-losses of long positions will be hit, which might lead to further decline toward another buying zone at around 1.2370.
Another support could be located at 1.2300 afterward.
On the upside, the medium-term resistance seems to be at around 1.2430, where the bearish trend line from April' highs is located. If this level is taken out, the medium-term trend could switch back to bullish, targeting the 1.25 resistance in the initial reaction.
It's hard to imagine the greenback strengthening any further, considering how aggressive is the Fed's money printing, but the financial markets usually move to the other side of people's expectations.
