We may be witnessing a formation. It is still early to judge though. The volatility is still to high. This morning there was a fast upsurge, which did not hold, but answered only by a same strength of downfall. This means extreme volatility, indecisiveness on part of traders. Oil may show a short term recovery quite soon, judging from technicals and USD is not in the mood to continue up at the moment, but quite opposite. I would still recommend to sit on the sidelines and wait for clear signals to jump in, one way or another. Also note: If the formation is validated the USDCAD correction may even fall beyond 1.28 levels, as this type of formation is a very potent one.