Oil Markets Teeter on the Edge of a Significant Formation Shift

Starting with the macro calendar, it's relatively sparse today, with Germany's IFO business climate index being the notable release. This data, anticipated to register at 87.6, may offer some insights post-European session opening.

In the currency markets, there's a noticeable bearish correction against the dollar and Japanese yen, with the New Zealand and Australian dollars emerging as frontrunners. The Euro is also gaining, particularly against the USD, where the EUR/USD pair is correcting after Friday's significant decline. Interestingly, Friday saw the pair touching November highs before retreating, indicating a possible shift in trader sentiment.

Turning to indices, the bullish momentum doesn't seem to be waning. Instruments like the S&P 500, Dow Jones, and NASDAQ are hovering near their long-term highs, suggesting we might witness new peaks being established today.

The commodities market is equally dynamic, particularly in the realm of precious metals. Gold and silver, following a downward trend on Friday, are attempting to claw back with modest rises. However, the real action is in the oil markets. Here, we're witnessing a pivotal moment as both WTI and Brent crude are on the cusp of completing a double bottom formation. The current struggle at the neckline of this formation is critical; a breakout above this horizontal resistance could activate a mid-term buy signal for oil traders.