The Hornets welcome Leeds to Vicarage Road tomorrow in desperate need of a victory as they look to climb out of the bottom three.
The Whites could all but secure their top-flight status with a win as they would move onto 33 points with six games remaining.
"The gap between Burnley, Everton, Watford and Norwich is not enormous. And it's a gap, which is one that we could actually do something about and find yourself at the top of that group, rather than the bottom of it," he said.
"But the same applies, of course, for Norwich, as well as for us. We're in a fight together the four of us. And it's our job to try and win that fight and hopefully drag a few more teams into the fight with us during these last eight games."
Leeds have picked up seven points from the last nine available in the Premier League, which has eased their fears of relegation.
They are not in the clear yet and Hodgson feels tomorrow is an "opportunity" for his side to pick up some much-needed points.
"This is another opportunity for us, we are playing at home," he added.
"We are playing against a Leeds side who are good, and have had some very good results under the new manager Jesse Marsch.
"So we know that to get those points, it will be a question of how well the team plays when the referee blows the whistle at 3pm on Saturday afternoon."