Touche is a fencing word meaning a style of blocking or coming back into fighting stance. Using the word touche is appropriate when one person comes back with a good response to something someone has said.
It originated as the term used for a hit in fencing, as touche is French for "touch". It then evolved as a word that acknowledges a witty response to something that was said.
Touche is the French word for "ouch". It is used to mean, "You have hurt me" or "You have wounded me. " It was originally used in fencing to indicate that one has hurt another.
It's a term used in the sport of fencing to acknowledge an opponent's hit. It also means "good point," or "yeah, you got me" when it's a reply to an apt witticism or justified accusation.