The euro slid versus its major counterparts for second day before the European Central Bank meets tomorrow to discuss measures to tackle to lower peripheral yields and support the region’s economy. European Central Bank President Mario Draghi said the central bank’s primary mandate compels it to intervene in bond markets to wrest back control of interest rates and ensure the euro’s survival. Expectations for some kind of ECB bond-buying intervention are growing and investors are hoping the ECB will at least reveal the range of maturities that are eligible for purchase.

Policy makers are also awaiting a German court ruling on the constitutionality of the eurozone’s permanent bailout fund, European Stability Mechanism. German Finance Minister Wolfgang Schaeuble said yesterday he was completely sure the ESM will become functional. However, Finance Minister Schaeuble warned investors not to expect too much from the ECB plan. He said “We have to be very careful that we don’t raise false expectations. It has to remain very clear, state debt can’t be financed through monetary policy. Therefore we can’t have a decision that’s not covered by the ECB mandate”.

The EUR/USD pair has been trapped in a relatively tight range recently. Worries about the U.S. economy sour the sentiment. Investor expectations for another round of quantitative easing gained momentum after Federal Reserve Chairman Ben Bernanke last week kept the door open for further easing. ISM’s survey showed U.S. manufacturing continued to shrink. The payrolls report due Friday will be closely watched. The employment report will be the final major economic data before the Federal Open Market Committee meets on September 12-13.

The Asian stock markets opened lower today. NIKKEI started the day at 8,756.59, previous close was 8,775.51. HANG SENG opened at 19,330.20, previous close was 19,429.90. Senior currency strategist at Royal Bank of Canada, Sue Trinh said “The global backdrop remains very challenging. Expectations for the ECB to deliver details on the bond-intervention program specific enough to satisfy the market are likely to be disappointed”.

EUR/USD is trading at 1.2532 by the time of typing and for today resistances are located at 1.2600 and 1.2666. Support levels are 1.2496 and 1.2457.

GBP/USD is at 1.5862. Resistance levels are located at 1.5894 and 1.5928. Supports are located at 1.5840 and 1.5786.

USD/CHF is trading at 0.9586 by the time of typing and for today resistances are located at 0.9642 and 0.9692. Support levels are 0.9532 and 0.9482.

AUD/USD is trading at 1.0193. Resistances are located at 1.0227 and 1.0268. Support levels are 1.0169 and 1.0128.

The economic calendar is loaded with the medium impact events today. Swiss CPI data and Spanish Services PMI figures will be released at 08:15 GMT. EZ Final Services PMI will be released at 09:00 GMT. EZ Retail Sales numbers will be released at 10:00 GMT. US Revised Non-farm Productivity report will be released at 13:30 GMT. Bank of Canada Rate Statement is due at 14:00 GMT.