As per the description you have given, it is unlikely to be fungal infection
as it is localized to a small area ,smooth and acute in onset ( you noticed it in morning).
The swelling may be because of a bug bite: itching and redness
of the swelling would indicate towards bugbite. Tab.Levocetrizine 5 mg, once daily in evening for 3 days would help.
Hope this helps, Take care