FOREX-Euro gains fade but market hesitates before downside

                                
 * Euro support seen at $1.1900, above 4-year low of $1.1876
                                
 * Aussie, kiwi off rebound highs vs yen, dlr as shares fall
                                
 * Euro slips towards latest record low of 1.3746 Swiss francs
                                
 By Charlotte Cooper
                                
 TOKYO, June 9 (Reuters) - The euro lost steam on Wednesday,
keeping near a four-year low on the dollar, although talk of
sturdy support at $1.1900 stopped it sliding too far, while
higher-risk currencies slid as Asian share markets fell.
                                
 The euro also remained near an all-time trough against the
Swiss franc, set on Tuesday below 1.38 francs <EURCHF=R> when the
Swiss National Bank declined comment on whether it intervened to
weaken the franc. [ID:nWEA5363]
                                
 Traders and analysts said the focus was on the European
Central Bank and what it could do to shore up sentiment, and with
the market awaiting the next trigger, the euro was caught between
strong bids linked to options around $1.1900 and heavy offers
expected above $1.20.
                                
 ECB chief Jean-Claude Trichet speaks later in the day ahead
of an ECB meeting on Thursday that the market will watch for more
signals or steps to ease strains from the euro zone's debt crisis
or support the economy. [ID:nLDE6560K2]
                                
 German 10-year bond yields fell to a record low on Tuesday as
investors sought the safety of the euro zone benchmark paper on
continued worries about fiscal woes in euro zone countries and
Britain, after a warning to the UK from ratings agency Fitch.
                                
 "Despite the substantial (euro zone) policy package and the
details we have got on that, European bond markets continue to
show signs of stress and that suggests the euro can fall further
from here," said John Horner, FX strategist at Deutsche Bank in
Sydney.
                                
 The euro slipped to $1.1940 <EUR=>, down 0.3 percent from New
York trading levels but above Monday's four-year low of $1.1876.
                                
 Chart focuses for the market are expected options triggers
around $1.1850 and a low set in early 2006 at about $1.1825.
Horner said Deutsche Bank expected the euro to slide to $1.15
over the coming few months.
                                
 Analysts say liquidity is below levels seen earlier in the
year, making price action volatile, with rebounds catching out
short-term players by their triggering stop-losses, even though
the overall downward trend for the euro remains clear.
                                
 "There are some who believe that the ECB may go as far as to
lower interest rates, although this view is not widely held,"
said a trader for a Japanese trust bank.
                                
 "But if the ECB only offers to supply more funds and does not
meet market expectations for bold steps to help the economy, the
stock market may not react positively and that could hurt the
euro too," he said.
                                
 YEN TAKES BACK GROUND
                                
 The euro slipped 0.3 percent from late U.S. levels to 109.17
yen <EURJPY=R> after gaining 0.5 percent on Tuesday. One broker
said selling by Japanese insurers briefly helped push it below
109.00 yen early on.
                                
 The Australian dollar, which bounced more than 2 percent
against the yen in the previous session, fell 1 percent to 74.96
yen <AUDJPY=R>, its losses deepening as Asian share markets
headed lower. The New Zealand dollar <NZDJPY=R> also shed 1
percent.
                                
 Japan's new prime minister, Naoto Kan, formed his cabinet on
Tuesday. His new finance minister, Yoshihiko Noda, declined to
comment on foreign exchange levels, saying just that excessive
moves hurt the economy and financial markets.
                                
 "In terms of FX implications, the market expected too much
for a weak yen policy by Kan," said Masafumi Yamamoto, chief FX
strategist at Barclays Capital in Tokyo.
                                
 The dollar held steady on the day at 91.45 yen <JPY=>.
                                
 The Aussie also lost ground to the U.S. dollar after climbing
more than 2 percent on Tuesday. It slipped 0.5 percent to $0.8215
<AUD=D4>, pressuring chart support at $0.8210/20.
                                
 The U.S. dollar index <.DXY>, a measure of its performance
against six other major currencies, slid 0.1 percent to 88.316,
below a 15-month peak of 88.708 on Monday.
                                
 Sterling eased 0.2 percent to $1.4425 <GBP=D4> but held
steady against the euro at 82.77 pence <EURGBP=D4> after falling
on Tuesday when Fitch said fiscal challenges facing Britain were
"formidable".
 (Additional reporting by Satomi Noguchi in Tokyo and Reuters FX
analyst Rick Lloyd in Singapore; Editing by Chris Gallagher)