Call me nuts but this is what actually happens: FX dealers have ALL your data, regarding position size, price entry and SL levels. This advice is given to the liquidity providers (Deutsche Bank, JPM and so on) and they can easily push the price until you get stopped out.
When you have traded FX for some years I don't believe this info is too surprising for you.
Price goes from the path in which it can cause maximal pain.
(I want to add, this isn't true for all of the markets for eg. Bond market but FX since here would be the most little fish.)
Just think about it. The banks have perfect knowledge of the markets, meaning that they have of the information available about them. They all know EXACTLY what is the fundamental story, how they should be set up, the way the technical image looks, so where they ought to add positions to their long-term trades (remember, they cannot trade short term profitably due to their size unless there's someone to SKIN) so my point is, there's very little space to compete against each other at the mid-term, they rather keep long term trades AND f*** all the tiny traders in the brief run. This is the way they make money.
If you have more insight on this topic please don't be afraid to share this information!
With regards: