The 28-year-old helped Michael Laudrup's side to League Cup glory in his debut season in English football and has seen enough quality in the squad to take them far in their maiden continental campaign.
However, the Spaniard has experience in European football from his time at Valencia and has warned his team-mates they will need to be at their best.
"It’s very tough in this competition," Hernandez told Swansea's official website. "Just to get to the group stages can be very, very tricky.
"We certainly have the quality in the squad now to progress and I think our style of play is important too.
"How far can we go? We will see. But if we can get through the first couple of rounds then I have the confidence in this team that we can go far."
Swansea's Europa League journey starts with a third qualfying round tie with Malmo at the Liberty Stadium on Thursday, and Hernandez believes home advantage can help them take a lead to Sweden for the second leg.
"With the game being over two legs, you want to make the most of playing at home in the first game," he added.
"But we have confidence in ourselves that we can progress.
"We will have the Liberty behind us and our fans make an amazing atmosphere. I think it will be another special atmosphere for the players, the fans, and the club."
