The dollar is losing a little bit of ground now in European trading and the aussie is taking full advantage of that, as it seeks to post a fifth consecutive day of gains today. AUD/USD is now trading above 0.6700 for the first time in three weeks and more importantly, buyers are attempting a break above the 200-day moving average (blue line) of 0.6690.

A break above that as well as the 61.8 Fib retracement level of the swing lower last month at 0.6680 will put the focus back on the 100-day moving average (red line). That is where buyers have failed to get above since April trading and it is seen at 0.6744 currently.

Beyond that, the April and May highs close to 0.6800 will offer the next big test for AUD/USD in trying to seek a further upside leg.

This week, the aussie has been helped by the RBA surprising with a rate hike. And with little else going on in markets, it continues to find legs in this latest run higher. The daily close is going to be crucial and while the dollar might only be pushing and pulling against other major currencies at the moment, this is one to watch as it is contesting key technical levels on the week.

This article was written by Justin Low at www.forexlive.com.