Kenny Miller had the best chance for Wolves after 60 minutes, but he failed to hit the target from close range after a superb cross from Leon Clarke.
Carl Cort's introduction after the break had led to an improvement and he might have scored with a shot that was well saved by Richard Lee.
Watford striker Hameur Bouazza had his team's best chance of the match - but his shot missed Michael Oakes' goal.
Watford boss Ray Lewington:
"We didn't show anything going forward in the first half. In the second, we did a lot better and created one or two promising situations," he said.
"As entertainment goes it was poor. Having said that I don't think any of us should give up on the play-offs.
"The results are unbelievable week in, week out. Someone will go on a run and kick on and it could be Wolves."
Wolverhampton: Oakes, Edwards, Lescott, Craddock, Naylor, Cooper (Cort 55), Ince, Andrews (Kennedy 77), Seol (Cameron 82), Miller, Clarke.
Subs Not Used: Ikeme, Olofinjana.
Watford: Lee, Chambers, Cox, Demerit, Darlington, Eagles, Blizzard, Jackson, Mahon, Bouazza, Webber (Dyer 87).
Subs Not Used: Chamberlain, Ardley, Doyley, Young.
Ref: G Salisbury (Lancashire).