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FXstreet.com (Córdoba) - The Euro dropped to a marginal new low against the Dollar after Fitch Ratings said Friday it cut the Greece's sovereign from C to 'restricted default'. This was widely anticipated as Fitch has said for some time that when Greece completes a bond swap that includes a haircut, the country will be in default.

EUR/USD hit a fresh 2-day low of 1.3106 in recent dealings and it is currently quoting around 1.3110, where it records a 1.2% loss on the day. The Euro had fallen sharply against the Dollar in the wake of US NFP report, but has managed to hold above the 1.3100 mark so far.

From a technical view, "Hourly studies are deeply in negative territory, with immediate risk seen at 1.3100, loss of which to confirm lower top at 1.3290 and resume broader downtrend off 1.3284 double-top", said Slobodan Drvenica, analyst at Windsor Brokers Ltd. "Daily studies are also losing momentum, with today's close below 1.3100, neckline of head and shoulders - like pattern, on a daily chart, to open way for more significant losses, with 1.3026/00 zone seen next".

"Brief pause in current descend might be seen, as hourly studies are at their extremes", said Drvenica.

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