The stand-in skipper is confident the dramatic three-wicket victory over Michael Clarke's men at Cardiff on Saturday can be the turning point for even greater achievements.
England squared the series thanks to a dramatic and explosive 65 not out by wicket-keeper Jos Buttler to ensure the series goes down to the wire.
"We can go into that match with real confidence and the feeling that we have a chance to win the series, and we must grab it with both hands," said Morgan.
"We have so much potential and ability in this ODI squad. It's a very young squad which just needs time to develop and really show its skills.
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"Winning a game like we did today will give the guys an enormous lift. The dressing room was very lively and excited at the end, and you want to it to be like that."
Buttler kept his nerve and composure to get England over the line after coming in with his side struggling and looking beaten on 144-6.
Morgan said: "It was a world class innings from someone we all know can hit the ball very hard and a very long way.
"Jos always has the potential to win matches in that way. But this was such an important victory. Now we have the chance to win it in Southampton on Monday.