It used to be the acknowledgement of a hit in sword fighting. French would say it. Now it can be used in arguments/conversation. Like in one simpsons episode, Homer goes on a truck ride and bart comes with him. Homer: Hey, shouldn't you be in school? Bart: Shouldn't you be in work? Homer: Ah, Touche. Accepting that he has lost... taken a hit.

Touché - don't forget the e acute :)

touche = likewise

In fencing , touché, the French word for "touched", is used to acknowledge a hit , called out by the fencer who is hit. Conversely, if a fencer concedes a hit when no hit was actually made, the fencer's adversary would say, "'pas de touché'" to indicate that the hit should not be counted. The word touché is also often used in popular culture and general conversation, for example, in an argument or debate to commend someone on a clever response or counter point to an argument. :)

Thank you, Migual!!