Dunne said: "For us to progress as a club and be seen to be progressing, we have to go to places like Hamburg with a massive crowd against us and put in a strong performance.
"It has to be one full of character and one in which we display all our talents. This provides a big chance for us to show what a good team we are and come away knowing that a place in the last four is in our own hands.
"This is probably the toughest draw we could have had. It will be a great occasion with two sold-out legs.
"We certainly shouldn't have any fears. The Premier League is the strongest league in the world and we are a strong side within that.
"It is up to us. If we perform like we can then we will get the right result."