Northern Ireland are fourth in qualifying Group C after picking up two points from their opening four games.
The match away to the Faroes, the side’s first outing in 10 months, will be followed by a trip to Belarus on 27 October – and Callaghan said the mood in the camp is very positive.
“We were in training together three times a week and when the club training started we narrowed it down to twice a week,” she explained.
“There have been massive improvements over the last few months amongst the home-based players. There is a real buzz around the squad at the minute and we really can’t wait to go away for these matches.”
The opening round of fixtures saw no shock results, with holders Linfield – aiming for a fifth consecutive title – beating Crusaders 2-0, Sion Swifts hammering Derry City 6-0 and Callaghan’s Cliftonville losing 2-0 to Glentoran.
The Reds take on Derry City on Wednesday night at Solitude and Callaghan said she and her team-mates are confident despite last week’s loss.
“It was tough to take the defeat but we did come away from the match happy with the work-rate that we put in,” she added.
“Glentoran were just a bit too strong for us but we did work hard and we have a lot of positives to take from it. I think every club has strengthened and we are looking forward to taking on Derry.”
In Wednesday night’s other fixtures, Glentoran play Linfield in a Big Two derby at the Oval and the Crues are at home to the Swifts.