* Euro hits 3-week low vs dollar, USD index hits 1-mth high
* Greek, Italian fiscal issues weigh on single currency
* Euro faces more downside as central banks meet this week
By Naomi Tajitsu
LONDON, Sept 5 (Reuters) - The euro fell broadly on Monday, touching a three-week trough versus the dollar as worries about Greek and Italian fiscal deficits and a regional election rout for Germany's ruling party cast more doubt on the euro zone's ability to solve its debt crisis.
The single currency fell to $1.4113, its weakest since mid-August, also pressured by a 2 percent slide in European shares in early trade .
While euro sentiment remains firmly negative, traders cited sovereign demand in the $1.4110-1.4100 region, which limited selling in the near term, while technical support at $1.4110 was also seen.
Other currencies perceived to be higher risk, including the Australian and New Zealand dollars, also took a hit against the dollar, while the greenback hit a one-month high versus a currency basket.
The suspension of an EU/IMF mission to Greece late last week has cast doubts on whether Greece can cut its budget deficit enough to secure another tranche of bailout funds, while Italy's inability so far to meet its budget commitments continues to hammer its sovereign bond market.
Analysts see more downside risks to the euro after a big fall in support for Angela Merkel's Christian Democrats in a regional vote in Mecklenburg-Vorpommern on Sunday highlighted the German chancellor's waning popularity as Europe's top economy bears the brunt of assisting its heavily indebted neighbours.
"The pressure will be for the euro to move lower given the newsflow, but every time we move down to these levels we see (sovereign) rebalancing flows come in," said Richard Falkenhall, currency strategist at SEB in Stockholm.
"So whether we will see a break below $1.41 is hard to say."
Asian sovereign buying in euros helped to lift the single currency from its lows. This prevented a fall to $1.4110, a support level given that it is the 61.8 percent Fibonacci retracement of the euro's July-August rally.
Traders cited sell offers from $1.4180 through $1.42, while some large banks were interested in selling above that.
"We still favour playing it from the short side and would see $1.4210 and $1.4250 as selling opportunities," CitiFX Wire said in a note.
The euro's losses versus the dollar pushed the dollar to 75.074 versus a currency basket, its highest since early August. The basket is weighted mainly in euros, making it sensitive to fluctuations in that currency.
The dollar was flat on the day at 76.82 yen.
The Australian and New Zealand dollars each fell around 1.0 percent versus their U.S. counterpart. Those commodity-linked currencies are considered higher risk due to their higher yields and their dependence on growth in the global economy.
The single currency fell 0.5 percent to 1.1135 Swiss francs, as the ongoing economic concerns in the euro zone along with evidence of a continued slowdown in the U.S. economy raised demand for the safe-haven currency.
The franc's broad gains in the past week or so have raised expectations the Swiss central bank may have to initiate more measures to weaken the currency.
MORE EURO RISKS
The euro faces a week packed with more potential event risk, both political and legal, beginning with a German Federal Constitutional court ruling on Wednesday on suits claiming Berlin is breaking German law and European treaties by contributing to multi-billion euro bailouts of Greece, Ireland and Portugal.
A slew of policy announcements by major central banks also be in focus, given strong indications the global economic recovery is stuttering. will
This was highlighted by U.S. data late last week showing employment growth in the world's largest economy ground to a halt in August.
There is growing speculation over whether the ECB would continue purchasing Italian debt, a strategy that has caused sharp divisions within the Frankfurt-based central bank ahead of a policy meeting on Thursday.
(Additional reporting by Asia Forex Team; Editing by John Stonestreet)