The Gunners are in Belgrade for their second Champions League group stage match where they will take on Partizan Belgrade at the FK Partizan Stadium on Tuesday night but Wenger said that morale was not very high.
"The mood is still very low, but it is difficult to compare it with other disappointments - we have not yet discovered the measurement of lowness for a football team," he said.
"Everyone felt the same afterwards because we had a good opportunity to close the gap (at the top) and we didn't take it. But we are a good side and we will bounce back.
"I believe the kind of game we play needs a high level of confidence, so for us it is important that confidence stays high, but the whole squad is very low."