If banks and corporations are the ones who affect price, why the psychological levels exist? I would understand that inexperienced retail trader might do thing like this:
if the trend is going down and hits psychological support at 1.3, trader buys expecting that this is support and trend will turn around.
But if banks and corporations know that this is not support level, they do not start to buy, but continue selling, then this psychological level does not matter. I assume banks and corporations do not care about round numbers, because they have specialists. They care aboutt economic data and how much currency is really worth.
if the trend is going down and hits psychological support at 1.3, trader buys expecting that this is support and trend will turn around.
But if banks and corporations know that this is not support level, they do not start to buy, but continue selling, then this psychological level does not matter. I assume banks and corporations do not care about round numbers, because they have specialists. They care aboutt economic data and how much currency is really worth.