Edo Kayembe sent Rovers goalkeeper Aynsley Pears the wrong way in the 71st minute after Ryan Hedges was penalised for handball.
Former Watford skipper Eustace said: “I was so disappointed to lose on a really poor decision from the referee. I’ve seen it a number of times. I think it is a really poor decision.
“Ryan had his hands a little bit high but the ball has come off the lad’s back and hit his hand. Our lad wasn’t even looking at the ball. It is a poor decision that has cost us three points.”
Watford, coming off the back of two defeats on the road, made the early running.
But Rovers were unlucky not to go ahead in the ninth minute. Home keeper Daniel Bachmann, picked despite question marks over his fitness and form, fumbled a right-wing cross from Lewis Travis, and the ball fell into the path of Dominic Hyam.
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