Manchester United will lock horns with Jose Mourinho's Madrid outfit in the Champions League at Old Trafford on Tuesday night.
Owen is anticipating a closely-contested affair, but he thinks Ferguson will be confident he can lead his team to European glory for a third time.
"Sir Alex Ferguson at the minute has got one of the best teams he has ever assembled," Owen told Sky Sports. "He will be thinking what a waste if we don't win another Champions League in the next few years.
"This year his team are pretty healthy, no main players are injured, they are in good form and everything is perfect in the United camp at the moment and you have to take advantage."
Owen does not anticipate any players will freeze in what is a huge clash.
"Playing in big games, that is what it is all about," he said. "A lot of these United players have come through from an early age and they have played in some of the biggest games, likewise in the Madrid team. From the outside you can think the pressure is too much but this is another game.
"They will get that tingle in the stomach, it is big, but once the whistle goes they will use that to drive them on."
Owen feels that Cristiano Ronaldo will have to be marked closely.
"Ronaldo is the best player on the pitch, so he has to be stopped," he said.
"You can't always stop him and you just have to quieten him down but I'm sure if you ask him if Real don't win the title he would want United to win. But he is not going to be upset if he scores a goal, that is what he is paid to do."
Owen cannot see Ferguson going for a defensive approach.
"They are different types of managers, from the outside Mourinho looks quite astute, tactical and more defensive minded than Sir Alex," he said.
"Sir Alex just has utter belief in his team that they will out score anyone and he has always had an entertaining team that plays wingers and strikers and it is in his blood to be attacking, whereas Mourinho is more cautious."