Hakan Calhanoglu scored the only goal in last month's first leg at the BayArena, giving Roger Schmidt's side a slender advantage over last season's beaten finalists.
On Friday, they enjoyed ideal preparation for the second meeting with a 4-0 win over struggling Stuttgart.
"We're in a great position to reach the next round [of the Champions League]," he told the Bundesliga's official website.
"We're not the favourites but we can't allow ourselves to defend the whole time. We've got to make Atletico Madrid’s life really difficult."
Atletico have only twice overturned a 1-0 away leg deficit in UEFA competition, but a formidable record of 20 wins in their last 22 European outings on home turf offers plenty of encouragement.
The Argentinian coach remains defiant over his team's form, though.
"We have not lost anything because the season is not over yet," Simeone said.
"It is true we are finding it hard to score, but more worrying would be to not have any chances. I am happy with their work.
"Now it is time to regroup, to wait for Tuesday's game, and to keep working. That is the only path we know."
