The EUR/USD currency pair has extended its decline, approaching the psychological support level of 1.0500 during Wednesday’s European session. This downturn comes amid firm expectations that the European Central Bank (ECB) will lower its Deposit Facility rate by 25 basis points to 3% in its upcoming meeting. Additionally, the strength of the US Dollar (USD) ahead of the US Consumer Price Index (CPI) data for November has added further pressure to the euro. Traders should monitor this situation closely as economic indicators and central bank policies could heavily influence the EUR/USD trajectory in the coming days. Adapting trading strategies to current conditions is essential for navigating this evolving landscape.