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But this goalless draw, coupled with Leeds' draw at home to Norwich, means the Royals now need only eight more points to guarantee promotion.
The point moved Watford to within six points of Sheffield United in the automatic promotion places and saw the Hornets become the first team since Leeds back in October to take a point at the Madejski Stadium.
Reading had the first real chance to break the deadlock in a tight game when John Oster pounced on a loose pass by Matt Spring and teed up Dave Kitson for a shot that was blocked by Jay DeMerit.
Two minutes later, Kevin Doyle was denied a shot at goal by some rugged last-ditch defending by Malky Mackay and Bobby Convey hooked a shot over the bar after DeMerit and Chris Eagles reacted quickly to close him down from Dave Kitson's flick.
But Watford's direct style brought them their fair share of chances, Spring wasting the best of them when he fired over after Reading keeper Marcus Hahnemann had flapped at Eagles' cross.
Kitson should have broken the deadlock 13 minutes before half-time when Doyle flicked on Hahnemann's long punt, but the striker delayed his shot and eventually blazed over the bar.
And Reading were within a whisker of breaking the deadlock soon after when Kitson flicked on Convey's cross and Ibrahima Sonko's bundled effort at the far post was hooked off the line.
Watford raced straight to the other end and looked destined to score when Anthony McNamee's run and cross was half cleared into the path of Ashley Young, only for Nicky Shorey to bravely dive in and block his shot.
Then, in first-half stoppage time, Kitson's half-volley went through the legs of keeper Ben Foster and fell for Doyle, whose shot from the angle was brilliantly blocked by Lloyd Doyley.
The second half produced even fewer openings as defences dominated.
Spring's foul on Doyle 15 minutes from time offered Shorey the chance to break the deadlock, but the full-back hooked his free-kick over the bar from just outside the area.
And as the game entered stoppage time, Doyle beat the offside trap and rolled the ball invitingly across goal only for substitute Stephen Hunt to arrive slightly too late to get in a shot.