Andreas Weimann put the Hornets in front after just 10 minutes with his first goal for the club but James Vaughan's 40th-minute equaliser was enough to hand Palace a point in seriously foggy conditions.
Freedman admitted he could not have demanded more from his team as they leapfrogged Sheffield United to move out of the drop zone in the Championship.
Freedman said: "That's what I ask from the players, to let me worry about the results, as long as they put their bodies on the line, give their all and I thought they did that and the performance showed it.
"There was still enough time to get back in the game (following Watford's goal) and I felt we had a plan that got us the goal and we thought that maybe the last 20 minutes, we could've got another goal. The character showed, sticking in there after going a goal down was great to see.
"You can sometimes question your players when you go a goal down - `what's your response going to be?' - so I was happy with the response, not just to the goal, but for the rest of the game. There is a long way to go and that's kind of good for us because I think we are building some momentum in terms of performances and points."
Source: PA
Source: PA