Manager Jayne Ludlow believes Wales can achieve an upset against Norway next month if they can keep improving.
However, Wales competed well against a side who had been averaging eight goals a game and who are still to come to Wales for the return qualifier.
“We look forward to the home game… we showed when our players are fit we can compete with anyone,” she said.
Wales, who saw a late penalty appeal for a handball waved away, are now seven points behind Group C leaders Norway and in a straight battle with Northern Ireland for a runners-up berth.
The nine group winners and three best runners-up qualify automatically for the tournament, with the remaining six runners-up entering play-offs.
Wales host the Faroe Islands on 22 October and Norway on 27 October in their next round of fixtures.
Ludlow feels Wales have a chance of getting what would be a vital won or draw against Norway, but only if they show a more clinical touch in front of goal.
“When you think of our expectations, I am so proud of how hard the girls worked and the fact that we’ve created opportunities – ok, we didn’t get the details right and take them – but the fact we’ve created far more opportunities than people would have expected, makes me so proud of the girls,” she said.
“But it was a good performance, an improving performance again, which is all I can ask for.
“If we can improve again next month, then hopefully improving means we take our chances.
“The girls have a month to play some more games and we will look forward to the next camp.”
Captain Sophie Ingle, who made her 100th international appearance in Oslo, also felt it was only a lack of a clinical touch in front of goal which cost Wales the chance of an upset.
“We knew it would be a tough test against Norway, they are a great side and ranked above us, but we put in a great shift,” she said.
“We had to defend really well and I thought we had chances to nick a goal, but unfortunately it didn’t go our way.
“At this top level you have to take the chances you get and unfortunately we didn’t do that.
“We created quite a lot of chances, we just weren’t clinical enough.
“We have a few weeks now, hopefully everyone keeps fit for their clubs and we have the massive challenge of Norway coming to our place, hopefully we can get the result that we need.”