The veteran coach believes his side can overcome the loss of some crucial players and reach the quarter-finals while he urged his players to forget the first leg score
The former AC Milan boss watched his team take a 2-1 lead in Mestalla in February's first leg but, with Zlatan Ibrahimovic suspended and Jeremy Menez confirmed as injured, they are far from assured of a place in the last eight.
However, Ancelotti believes les Parisiens will have enough to overcome their Spanish visitors, though he predicted a change of style from the Liga outfit.
"We are still in contention in several competitions, and I am confident," he told a press conference.
"I think Valencia will play their usual game, although I expect them to threaten on the counterattack a little more than normal. We are going to play our own game and use our own qualities.
"I think we have got a great opportunity to get into the quarter-finals."
The 53-year-old also urged his players to forget about the aggregate score and concentrate on winning the match at Parc des Princes.
He added: "We must forget the first leg result and take control of this match."