Carvalhal arrived at Hillsborough this summer and has brought in a number of new faces, as he looks to build a squad capable of being promoted from the Championship.
Wednesday's start has been inconsistent so far, with the squad often failing up the points that their performances have merited, but Wallace insists that Carvalhal is the right man for the job.
“He [Carvalhal] has been absolutely outstanding since he has come in. He is clever. Tactically he knows what the team needs," the former Burnley man said.
“I have loved training. It has been absolutely brilliant. Obviously, being a foreign manager, if he loses a few games, it’s because he’s not British and will come under a little pressure. But he’s a good manager, a good coach and the lads are happy and right behind him.”
At the moment, the Owls sit in 14th place in the Championship table, after winning just two of their opening eight matches.
Wednesday were victorious in their most recent fixture against Fulham, though, and Carvalhal will be hoping that result can kick-start their season.
The Owls were in fine form at Hillsborough on Saturday, with their attacking intent on display throughout, and goals from Fernando Foriestieri, Tom Lees and Michael Turner provided them with all three points.
Wednesday's next fixture comes against Newcastle United in the Capital One Cup on Wednesday night, and they will be keen to inflict further misery on Steve McClaren's men, who have started the new season in disastrous fashion.