Can one use empathic link to heal wounds of allies?

Yes. It is just a bit risky since they also take half your damage.

I assume you mean Stamina, not Wounds....

Well it states healing. I was wondering if it did both, heal stamina and wounds.

Doing it outside of combat to heal wounds is what I wondering about most.

My read does not suggest that Empathic Link can be used to transfer Wounds, if for no other reason than you take HALF the damage, and in many cases of the game when you have a decimal you round down. As such, you would transfer 0.5 wounds, reduced to 0. The same works for healing, in my opinion. If you cannot alter the wounds transferred to an an even number, I wouldn't say it would work.

Personally, I think Empathic Link is only for Stamina damage, but it does not say it, hence I assume the question.

That's what I assumed also, but I just wanted to clarify.

It's mostly for stamina...

there are cases, at higher tier, that a target may suffer 2 wounds from one attack..

in which case the caster would suffer 1 wound of damage.