Exchange traded funds that track European stocks have rallied and pushed above their long-term trend lines as investors look to the European Central Bank to help stabilize the ongoing crisis.

Broad Europe ETFs have crossed over their 200-day exponential moving averages. The Vanguard European ETF (NYSEArca: VGK) is 3.2% above its trend line and iShares S&P Europe 350 Index Fund (NYSEArca: IEV) is 2.0% above its EMA.

Additionally, the iShares MSCI Germany Index Fund (NYSEArca: EWG) has risen 1.1% over its EMA and the iShares MSCI France Index Fund (NYSEArca: EWQ) is 1.6% above its long-term trend.

We look at the 200-day EMA to help decide when we are in or out of a position. By adhering to this strategy, we keep emotions in check and trade on set technical indicators. [An ETF Trend-Following Plan for All Seasons]

Reserve Bank of Australia assistant governor Guy Debelle believes that the ECB meeting on September 6th will be the deciding factor in the next phase of the Eurozone drama, Trading Room reports. [ETF Chart of the Day: European Financial Sector]

“This ability to put a bank aid on it and defer the problem for a few more months is coming to an end,” Debelle said in the article. “I don’t think you’ll have this continual pattern we’ve had for the last two years where things get bad, they get close to the brink and then they do something to pull it back.”

“I think whatever the decision, probably over the next three to six months will be a decision that says we really are serious and this is here for the long term, or something falls apart,” Debelle added.

European stocks were slightly lower Monday after the ECB did not announce any aggressive bond purchasing program, reports Sara Sjolin for The Wall Street Journal. [Spain ETF at Summer High on Bailout Hopes]

“After the recent rally we are now coming to a state where there’s a little bit of uncertainty about whether to follow through with the rally,” Predrag Dukic, senior equity sales trader at CM Capital Markets, said in the WSJ article. “We’ve seen some profit-taking this morning and people are waiting to see what happens next.”

Vanguard European ETF

For more information on European market, visit our Europe category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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