[tommyfx]

HI Trader ABC,


I feel the same laws of market psychology applies to everything that is traded, regardless of whether you trade against people or not prices are dictated by supply and demand, banks quote a price, the banks want to get orders so they can make money in spread, so they will show prices where they are going to be accepted, if the overall psychology of the market is fearful prices are at resistance level (call it x) and people are fearful of going long banks can quote x+1 all day long and people are unlikely to take it but if there are 1 billion dollars worth of sell orders at X-1 the prices will gravitate towards getting these orders filled, thus buying demand has dropped, more people are selling therefore supply has increased and prices will drop. Hope i've understood your point,

Tom