They have achieved some excellent results over recent years, but have failed to deliver in major tournaments and it hasn't matched their ambitions.
"They were just too good in the second half," Readings added. "It's something we've got to learn from. We've got to be better. We've got to keep the ball better. We've got to be able to be a little more composed when we win the ball because that's always been our strength when we've had good results - like the one three days ago - that's been on the back of really assured in-possession work.
"We'll go away now and lick our wounds and get together again for the qualifiers and put right some of these wrongs because we know we can play better."
The fury of the Brazilian fightback would have left the Ferns somewhat deflated after they did so well in the opening half hour to weather an early storm from their hosts. Despite Brazil regularly finding a way in behind in the New Zealand back four, the visitors stuck to their task and some composed and compact defending dealt well with the majority of Brazil attacks.
After a drinks break in the 26th minute, when Rosie White was also introduced into the match from the bench for Jasmine Pereira, momentum began to shift. Seconds after coming on, White delivered a cross from the byline which Gregorius came close to meeting with a header at the back post.
Any disappointment over the miss was soon forgotten as Gregorius brought the ball down on her chest on the edge of the area before expertly lifting it over the Brazil goalkeeper and into the back of the net.
That lead lasted until the break but just seconds after restart Brazil lifted again and hosts were at their dynamic best for the rest of the match, running in five unanswered goals to bounce back in style.
Brazil 5 (Poliana 46', Erika 57', Formiga 60', Marta 88', Debora 90+3')
New Zealand 1 (Sarah Gregorius 31').
Halftime: 0-1.