"We have that confidence. There is no doubt about that," he said of the prospect of repeating a Rangers formula in Europe last season that consisted of drawing 0-0 at home and then triumphing at places such as Sporting Lisbon and Fiorentina.
Smith was disappointed with the start his team made to this second-round qualifying match.
"I expected us to start with more pace in terms of passing. But give credit to Kaunas, they defended well throughout the evening. On the break, they were always capable of getting an opportunity."
He believed that the spell just before half-time was Rangers' best period of the match.
"We imposed ourselves on the game, played at a better tempo and had a couple of clear-cut opportunities and two or three half chance we have done better with," he said.
He added of the second leg: "We are capable of winning the game. We should not continue to look back at last season. We should look forward. It is not to say that because we did something last season that we can do it this season. We worked hard last season and had a bit of brightness about us. We are a little bit short of that at the moment but when the game comes round next week we will be better placed.