* European officials holding emergency meeting on Monday
* Contagion risks increase; Italian yield spreads at record high
* Euro breaks trendline support, path open for further weakness
By Neal Armstrong
LONDON, July 11 (Reuters) - The euro fell broadly on Monday, hurt by concern that the debt crisis is worsening as European officials gathered for an emergency meeting in Brussels, with a weakening technical outlook opening the way for further weakness in the single currency.
The euro fell following news over the weekend that European Council President Herman Van Rompuy had called an emergency meeting of top officials dealing with the euro zone crisis for Monday morning, amid concern that the problems could spread to debt-laden Italy.
A Financial Times report saying some EU leaders were considering allowing a selective default by Athens, to put its debt on a more sustainable footing, also dented the single currency, traders said.
The euro took a hit on Friday when Italian bond yields soared to euro lifetime highs, raising fears that Italy, with the highest sovereign debt ratio relative to its economy in the euro zone after Greece, could be next to suffer.
The 10-year yield spread between Italian and German debt widened further on Monday as concerns over contagion prompted investors to sell Italian paper in favor of safe-haven German Bunds.
"Concerns over Italy show contagion risks in the euro zone are increasing. Investor confidence remains low and will limit demand for euro-denominated assets," said Manuel Oliveri, currency analyst at UBS in Zurich.
In addition to Monday's emergency meeting, events to watch for this week include the results of stress tests of European banks, which are due to be released on July 15.
The euro slid almost 1 percent to a two-week low of $1.4133 , with its technical picture becoming more negative as it fell below trendline support from its May lows at $1.4156.
"This trendline support is regarded as the break down point to the 200-week moving average at $1.4024, the 1.3968 recent low and the 200-day moving average at $1.3907," said technical analysts at Commerzbank in a note.
Traders said a large option barrier at $1.4130 may slow further falls in the euro in the near term.
The euro fell 0.8 percent against the Swiss franc to 1.1840 francs , nearing a record low of 1.1808 hit in late June on trading platform EBS.
Traders said further upside in the Swiss franc was likely after the chairman of the Swiss National Bank was quoted on Sunday as saying there was no reason to curb the currency's strength at the moment as price stability was not yet under threat.
The euro fell 0.7 percent against the yen to 114.15 yen .
DOLLAR INDEX
Worries over global growth added to demand for perceived safe-haven currencies such as the Swiss franc and the U.S. dollar, after a disappointing U.S. employment report and data showing rising inflation in China spooked investors.
Data on Friday showed U.S. jobs growth nearly halted in June, adding to concerns about the health of the world's biggest economy.
Data on Saturday showed annual inflation in China accelerated to a three-year high in June with the consumer price index up 6.4 percent from a year earlier, slightly above analyst expectations.
The dollar index rose 0.6 percent to 75.614, up from Friday's low at 74.843. It faces resistance at its mid-June peak of 76.015.
However the looming threat of a U.S. debt default may check the greenback's gains. President Barack Obama and congressional leaders of both parties were in high-stakes talks to break the impasse over raising the debt ceiling.
The dollar stood at 80.78 yen , up 0.2 percent from late U.S. trade on Friday, supported by bids from Japanese importers, but remained below Friday's five-week high around 81.50 yen.
Global growth worries pulled commodity currencies lower as the Australian dollar fell 0.6 percent to $1.0694. The New Zealand dollar slipped 0.5 percent to $0.8328, pulling back from Friday's record high near $0.8400. (Additional reporting by Masayuki Kitano and Ian Chua, editing by xxx)