USDCAD Long Setup: Navigating Middle East Risks and Loonie Weakness

Geopolitical friction in the Middle East continues to dictate the broader market narrative, driving safe-haven flow into the US dollar and keeping major currency peers under clear pressure [1]. The Japanese Yen has retreated to the critical 160 level against the greenback, prompting intervention warnings from local officials [2]. In domestic data, US mortgage applications fell 2.5%, highlighting how high interest rates are slowly cooling the housing sector [3]. This macro backdrop is keeping risk appetite constrained as traders digest shifting central bank expectations. In equities, the technical and fundamental pictures are diverging. While Apple is holding up exceptionally well on the…