Los Che lost 2-1 to Paris Saint-Germain in Paris but the former Real Madrid player is confident his side can overturn the one-goal deficit next Wednesday.
"The tie is complicated but in football anything can happen. We are very motivated for the game and I hope to soar, we can move on and keep dreaming because Valencia is a club that has always been there in Europe,” he told a press conference.
Canales also admitted that his side must ensure they are in next season's Champions League by focusing on La Liga, starting with a win over Levante this weekend.
"It is important to look at the championship, and to fight for a place in Europe is our primary objective."
He also said that he has no regrets about leaving Los Blancos in 2012 after playing just 10 games for the club.
"These are games that everyone enjoys participating in, but at Valencia I'm having the opportunity to play very important games and I would not change that for anything."