Interference from other aliens on Earth will ruin your observations, by introducing outside effects. You work against these influences, but you are mainly a watcher.
Your path to "conquest" lies in having the Earth remain uninfluenced by outsiders (other aliens).
The Observer is here to observe, to watch, perchance to learn. To see, perchance to experience. The Observer is interested in what Earth is, what Humans are and maybe why they are.
The Observer is interested in keeping things the way they are on Earth, so that they may be observed and understand as they are. He may be actively engaged in defeating the more aggressive conquerors or "reformers." Even the Light Worker missions are not trusted by the Observer, for they too wish to change things.
Observers, you might think, don't do a lot. That's not the case. There are so many other mission groups here that are wanting to change things, that these raise a threat to the Observer's mission, which is to observer things as they are on Earth, not as they might be, for better or worse.
Observers will work to defeat all other efforts, pretty much (save, perhaps, the Investigator -- though even they don't mind changing things). They will tend to band up with each other more than any other mission type.
They may be more aggressive toward the more aggressive mission types, such as the Harvesters, who just want to pillage the entire thing and move on to another primitive planet to similarly pillage. So the Observer says, "move on to another planet, now! (Or else)"