If you would rather not make on screen controls for movement. You could compare the Touch.X and Touch.Y with the PLayer.X and Y.
If touch.X>Player.X---Move Right
If touch.X<Player.X---Move to the left
If touch.Y>Player.Y---Move Up
If touch.Y<Player.Y---Move Down
Compare the X and Y separately, and the diagonal movements should be automatic. This is awesome for people with only 8 direction sprites. They do not rotate to the sprite so they keep their proper alignment.
You can also have them rotate and move towards the mouse, but that really looks crappy.