The Italian coach believes that his side can channel the buoyant mood at the Santiago Bernabeu to overcome the Bavarians en route to a historic 10th Champions League crown
Los Blancos head to Germany on Tuesday for the second leg of their semi-final against the Bundesliga champions, taking a 1-0 lead with them after Karim Benzema's goal at the Santiago Bernabeu.
Madrid warmed up for the showdown with a comfortable 4-0 win over Osasuna, thanks to goals from Sergio Ramos, Daniel Carvajal and a Cristiano Ronaldo double, which Ancelotti felt was driven by his squad's sky-high morale.
"It is clear you can notice the good atmosphere in the club and with the fans," the 54-year-old told reporters after the game.
"As I said other times, this is important, it is very important that the atmosphere carries on like this to the following matches."
Madrid have been looking to add a 10th Champions League title to their collection since overcoming Bayer Leverkusen 2-1 in the 2002 final in Glasgow and Ancelotti is adamant that his squad can achieve the fabled Decima.
"Everyone is looking forward to see what happens and with this feeling the team can do more," he enthused.
"I am sure my line-up in Munich is going to be made by players that really are looking forward to it. We are not going to invent anything in particular for this game.
"Everyone can be calm, because we are going to prepare for the match well. I trust a lot in our players and I think everyone has to trust them."