Midfielder Maurice Edu put the Scottish champions ahead before the break with a header from a Vladimir Weiss corner then bizarrely put through his own net a minute after the restart.

The Ibrox men have five points from three games ahead of the return game in Spain but it could have been more if Edu's shot had gone in instead of hitting the post and Kenny Miller, Steven Naismith and Richard Foster not missed great chances during an enthralling 90 minutes.

"After the first 15 minutes or so when we were slow to start, we created the first real opportunity of the game," the Rangers boss said.

"We created quite a number of clear cut opportunities and in fairness to Valencia, they too had a few opportunities to score but over the piece ours were maybe the more clear cut

"We have had good finishing in our domestic games when the opportunities have come along so it was an unfortunate evening in that sense tonight.

"We have to be pleased that we managed to do that against a team who challenge you to go forward.

"We did that well for the last hour of the game and we feel disappointed that, with the chances we created, we maybe didn't take the three points.

"That happens in football, it is one of those things."

Valencia trail Rangers by a point but after only picking up two points in a disastrous Champions League campaign last season, Smith was cautious about predicting the return game in Spain would see the winners joining group leaders Manchester United in the knockout stages.

However, he admitted his side have "an opportunity" to progress.

Smith said: "There is not a great margin of error in the Champions League.

"In the last seconds they had opportunity and we had an opportunity.

"We are obviously in better spirits this season, the challenge is to see if we can get more points in the board but it will be a difficult task for us.

"In the position that both the clubs are in, it's going to be a big match but I prefer to look at the three matches that we have remaining.

"We face two away games, one at home and they will be tough and tight games.

"Bursaspor have two games at home and that is never an easy place to go.

"If we play as well as we have in the first three games then we have an opportunity, no more than that, to try and qualify."

In contrast to Smith, Valencia boss Unai Emery believes the return match in Spain will go a long way to deciding who plays Champions League football after Christmas.

He said: "This is a decisive game coming up. We are at home in familiar territory

"Rangers are a great side, they are where they are on their own merit.

"Rangers Bursaspor and Manchester United still in there but in the home game hopefully we an put it right

"We can take heart from the fact that we will be in our own back yard we will be motivated to push forward."

Emery admits being surprised at how well Rangers attacked his side who went in to the game strong favourites.

He said: "I didn't expect Rangers to create so many chances, they could have won the game.

"We created chances in the second half but so did Rangers, they did well on the counter and were always a threat with the high ball.

"The game didn't go so well for us. For a period in first half weren't performing well and Rangers stuck to their guns

"But hopefully we can put that right in the home game."