The week is off to an intriguing start with a promising setup on the American Dollar to Canadian Dollar (USD/CAD) pair. Last week's close left us with a bullish engulfing pattern on the daily chart, a classic signal indicating potential upward momentum. This pattern, marked by a green rectangle, shows Friday's bullish candle fully enveloping Thursday's bearish one, a clear sign of buyer strength. What's particularly noteworthy here is that this bullish formation appears right at a crucial support level, highlighted in yellow. This area has played a significant role since late February, initially acting as resistance until mid-April before flipping to support in May. The bounce off this key level reinforces the bullish sentiment, suggesting that the USD/CAD could soon test the orange downtrend line. While this setup looks promising, it's essential to remain cautious. The buy signal would be negated if the price closes below the yellow support area. However, given the current momentum, this bearish scenario appears less likely. For now, the outlook for the USD/CAD remains positive.