The Scot believes the blistering form of Brendan Rodgers' men this season and their lofty league position means his team are outsiders to emerge victorious on Sunday
United will go into the game 11 points off their great rivals and facing a monumental task to finish in the top four and secure Champions League qualification.
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After several seasons outside the title fight, Liverpool have launched into the upper echelons this season, and Moyes believes their strong showings, coupled with their lofty league position, make Brendan Rodgers' side favourites.
However, Moyes has backed his players to come good and avenge a 1-0 defeat at Anfield in the opening weeks of the season.
"Their league position suggests they're ahead of us," he told reporters. "They possibly do come here favourites.
"I don’t know if you will find out a great deal more in these matches from what we've been.
"You know what we are. We are a work in progress. We are looking to make changes in time. But I hope we can show what we are capable of.
"We are capable of winning these games. The players have shown it to me recently.
"It is a massively important game because of what it means to supporters and it is important to us because we want to keep climbing the table and clawing the points back and see what position we can get ourselves into.
"My biggest goal is not affecting their title challenge, it is to get United winning the title."