The 33-year-old has been impressed with the new-look England team's start to the tournament following their two away wins 13-6 over Scotland and 19-15 over Italy.
However, following Wales' barnstorming start to the Championship in which they have scored 50 points in two games Moody is wary of the threat Warren Gatland's side will pose.
But regardless of the results, Moody has been impressed with Lancaster's reign and believes one more victory could seal the interim head coach's application to become permanent boss.
"I think [victory over Wales] might be a step too far at the minute but if England can get one more win out of these next three games then we need to take some heart out of this campaign and build for the future," said Moody, who was capped 71 times by his country.
"You never know what the powers that be are thinking but I would hope that if he [Lancaster] got three wins then he deserves a crack at it.
"With Graham Rowntree and Andy Farrell there, he's got some quality coaches and, if they give him time to really grow this young side, then there are bright years ahead for this England set-up."
Meanwhile, Lancaster is eyeing the role on a permanent basis and hopes England's performances will continue to put his name to the fore when the RFU make their decision post the Six Nations.
"I've always worked on the mindset that if you work hard enough and long enough then you get your rewards," he said.
"All I can do is focus on doing the job to the best of my ability and trying to get a new England team working hard for each other and [getting] the country behind them so they can feel proud of the team.
"We've come some way to achieving that with two wins."