Monaco have not won a Ligue 1 match since the opening weekend of the new season and head to Germany sitting third bottom of the table following back-to-back defeats.
Favre, however, insists Bundesliga leaders Dortmund would be foolish to underestimate just how dangerous Leonardo Jardim’s side can be.
“Even though they haven’t started well, we’re coming up against a very good team,” the Dortmund coach said.
“Their defeats have often come down to small details. They had seven clear chances to score and lost 2-0 against Saint Etienne.”
Dortmund’s form is in stark contrast to that of the French side, who lost their opening Group A match 2-1 at home against Atletico Madrid.
The Germans are undefeated from six Bundesliga matches so far, one points clear of Bayern Munich and Hertha Berlin at the top of the table.
Dortmund opened their European account with a 1-0 win in Brugge last month.
Swiss coach Favre, however, rejected any suggestions of complacency.
“We have made a good start, but that does not matter,” Favre said at a press conference.
“All matches are very tight in the Bundesliga, apart from the 7-0 against Nuremberg, all the other games have been difficult.
“There are a lot of young people in this team, we still need to find a better balance (between attack and defence).”
One of those youngsters to impress in the early season games has been England Under-19 international winger Jadon Sancho, who has scored one goal and provided six assists.
The former Manchester City’s academy player has signed a contract extension to stay at the Westfalenstadion until the summer of 2022.
“I can really make outstanding progress here. I’m happy, delighted and proud to be part of this team. We’re building something incredible,” Sancho said on the Dortmund website.
“I’m so happy that I chose to come to Dortmund a year ago. Everything I was hoping for has come true: this city loves football like no other, and at BVB young players get regular playing time.”
Despite the negative headlines following yet another Ligue 1 defeat last Friday night, Monaco boss Jardim remains focused on the job in hand.
“After our loss against Atletico, we need a good result against Dortmund, that is our goal,” he said.
“We gave a good display (in our last European fixture) and can do the same here.”
“We are looking for the solution, the best system to play.
“We have ideas and all need to stay together.”