The Swans have won seven consecutive home games under the Portuguese manager to climb up to 13th in the Premier League table, with Saturday's 4-1 victory over West Ham United seeing them leapfrog their opponents in the standings.
However, Swansea remain only three points clear of the relegation zone with three of the top six left to face in their final nine Premier League games, while they must also balance FA Cup duties alongside their relegation battle, having been drawn against Tottenham Hotspur in the quarter-finals.
"When you come to a club, you have an emergency plan," Carvalhal told reporters during a press conference.
"Everything is burning and the first thing we must do is try to put water in the burn. When you are doing this, you don't have time to do different things, to rebuild things. You are focused on making the burn disappear. At the moment it is a lot better, we have used a lot of water!
"It is like a burn in the forest and sometimes the burn can appear again, if you don't care about the opposition and the forest. We are in that position. The fire is not there but the fire can come again."
Swansea will travel to the John Smith's Stadium on Saturday to face Huddersfield Town in a vital relegation clash.