The Gunners' season lurched to another crisis with their midweek Capital One Cup defeat to Bradford, where the League Two club won a penalty shoot-out at Valley Parade.
The Royals are rooted in the relegation places but Wenger suggests their position does not reflect their form and points to the way they ran Manchester United close in a 4-3 defeat earlier this month.
"They are a team who deserve a lot of credit because they came up last year, for me surprisingly," said the Frenchman.
"Reading make it difficult for every team in every game, so we expect a battle.
"Our results are quite consistent and good away from home. We had a good game against West Brom (and) it's important to confirm that in our next away game.
"If you look at our season at the moment, we have not produced our performances at home, away our results are in the same bracket as the two top teams.
"Where we have lost the points is we made too many draws at home. Manchester United are top of the league, six points ahead. They have lost three games, we have lost four.
"We had more draws, especially at home, that is where we have lost the points."
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