USD/INR tests levels under 73.00 as the Indian rupee extends gains

• Emerging market currencies gain versus the US dollar on Tuesday.
• USD/INR having the worst day since December.

The USD/INR is falling on Tuesday amid a broad-based correction of the US dollar and as equity price rise in Wall Street. The risk-on mode and the decline of the greenback pushed the pair under 73.00.

As of writing, USD/INR trades at 72.90, testing the 21-day simple moving average. A break lower would expose the next support at 72.75 and below then comes 72.50.

If the US dollar manages to rise back above 73.00, the cross will likely continue to move sideways between 72.90 and 73.40. A daily close above 73.45 would be a potential trigger of a test of 73.75, the next resistance as the price would be above the 100-day moving average.

In the short-term, USD/INR is moving sideways, still slightly bias to the upside after it broke a downtrend line last week. For the Indian rupee to rise further versus the dollar, Treasury yields need to stabilize, and equity prices in Wall Street avoid sell-offs.

Technical levels