Wales are going in the right direction says manager John Toshack after last night's heart-wrenching 1-0 defeat to Austria at the Ernst Happel Stadion in Vienna.

Wales ripped their hosts to shreds on countless occasions but did not take their chances and were sunk after goalkeeper Danny Coyne made a blunder three minutes from time.

"I think the reaction of the players after Saturday was very, very positive," Toshack said.

"I wish the Austrians good luck but I think they were very fortunate to win the match.

"Over the two games the most influential player on the field was their goalkeeper.

"We can be pleased with the performance, though obviously disappointed with the result, but we have got to get something positive out of the next 12 months so that when the next tournament comes round we will know more about what we want."

Toshack could not believe that Wales went into the break level with their hosts after a first half onslaught and had a feeling that they might regret their missed opportunities.

"When you have a 45 minutes like we have had you always have at the back of your mind 'are we going to pay for this?' They couldn't believe their luck at half time.

"They pushed forward in the second half, as we knew they would, but we kept our shape and balance reasonably well and had even more chances."

He added: "There are still one or two things we can do and we can be better at some things but I think there were positives right the way through.

"We all feel at lot happier about that, it has done a lot of good especially as we don't play again for five months.

"Sometimes football kicks you in the teeth and we did not deserve to lose."

The Wales boss has identified where the side need to improve and he believes that will happen.

He said: "Our problems came when we gave the ball away. In both games they have not cut us up, it is our own hesitancy that has caused us problems.

"We have cut them up with good football on five or six occasions. We have had a few great moves but we have not won and it disappointing.

"But from little acorns great oak trees grow, as they say."

Toshack refused to place the blame on his goalkeeper Danny Coyne after his late gaffe.

He said: "It was very unfortunate but these things happen. We've seen the same thing happen to the England goalkeeper David James on this very pitch in their 2-2 draw here.

"It is difficult for him, and all our goalkeepers, because they are not playing (for their clubs) and that is a problem we would like to see resolved."