-- Euro and Australian dollar dive against greenback amid summit disappointment -- Emerging market currencies also come under heavy selling pressure as sentiment sours -- Swedish krona suffers after a run on Swedbank in Latvia -- Sterling, though, powers to its strongest level against the euro in nine months By Alexandra Fletcher Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The euro and other risky currencies sank in European trading Monday as investors expressed their disappointment at the lack of a definitive solution to the euro-zone debt crisis at last week's European Union summit. But sterling was an exception, with the U.K. currency powering to its strongest level against the euro in nine months and paring its early losses against the dollar as investors seemingly warmed to, rather than fretted about, the country's decision to isolate itself from its European partners by vetoing a treaty change. The euro traded at fresh December lows against the dollar, even as an Italian 12-month treasury bill auction drew decent demand at lower yields. The Australian dollar hit session lows against the dollar, while emerging market currencies like the Hungarian forint, Polish zloty and Czech koruna also came under selling pressure. The overall picture in the market was a gloomy one because of the failure of EU leaders to clarify key issues, including the leveraging of the European Financial Stability Facility and role of the European Central Bank. "There is no question that the market is extremely nervous despite the summit last Thursday and Friday," said Adam Myers, senior market strategist at Credit Agricole. "The euro is likely to come under further pressure this week and is on target to trade at October 4 lows against the dollar ($1.3145). The U.S. Federal Open Market Committee decision tomorrow should signal that quantitative easing is off the table until at least (the first quarter and) will also put pressure on the euro," he added. Moody's Investors Service said the summit had offered few new measures and that it still expects to reassess its ratings on European sovereigns early next year. Rival credit rating agency Standard & Poor's is also likely to take similar action in light of its decision last week to place 15 euro-zone countries on credit watch with negative implications. Sterling made a mid-session recovery after trading at session lows against the dollar. Traders said a U.K. clearing bank sold the euro against sterling, giving the pound a big lift. The cross fell to as low as GBP0.8485 The Swedish krone came under heavy selling pressure against the euro after savers in Latvia withdrew unusual sums of cash from Swedish bank Swedbank's cash machines at the weekend. At 1122 GMT, the euro was trading at $1.3267 against the dollar, compared with $1.3385 late Friday in New York, according to trading system EBS. The dollar was at Y77.82 against the yen, compared with Y77.63, while the euro was at Y103.25 compared with Y103.90. Meanwhile, the pound was trading at $1.5626 against the dollar, compared with $1.5662 late Friday in New York. The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 79.144 compared with 78.593 late Friday in New York. A summary of key levels for chart-watching technical strategists is below: Forex spot: EUR/USD USD/JPY GBP/USD USD/CHF Spot 1118 GMT 1.3268 77.81 1.5623 0.9293 3 Day Trend Bearish Bullish Bearish Bullish Weekly Trend Range Range Bearish Bullish 200 day ma 1.3846 79.03 1.5941 0.8894 3rd Resistance 1.3434 78.29 1.5780 0.9465 2nd Resistance 1.3395 78.11 1.5734 0.9408 1st Resistance 1.3325 77.93 1.5714 0.9331 Pivot* 1.3367 77.64 1.5661 0.9230 1st Support 1.3212 77.67 1.5539 0.9262 2nd Support 1.3145 77.49 1.5470 0.9222 3rd Support 1.3050 77.45 1.5425 0.9176 Forex spot: EUR/GBP Spot 1118 GMT 0.8495 3 Day Trend Bearish Weekly Trend Bearish 200 day ma 0.8684 3rd Resistance 0.8620 2nd Resistance 0.8611 1st Resistance 0.8561 Pivot* 0.8548 1st Support 0.8486 2nd Support 0.8400 3rd Support 0.8385 -By Alexandra Fletcher, Dow Jones Newswires; +44 (0) 20 7842 9462, alexandra.fletcher@dowjones.com;@djfxtrader (Dow Jones Technical Strategist Francis Bray contributed to this article.)

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