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Do you have any known allergies?
A differential for this is an allergic reaction to an unknown trigger ( unless you may be able to provide some triggers) as well as seborrheic dermatitis. Other differentials for a rash will be psoriasis , a fungal infection or a viral infection. You have noted of dry skin along the hairline. With regards to the rash, would you be able to identify any scales in the area also? Psoriatic rash may involve the scalp and they may present with some patches of scales. There are cases of psoriasis which do not present with the scales. As for seborrheic dermatitis, they may present with some dryness and flaking of the scalp. The flakes of skin are greasy and yellowish. Do these apply to your case?