If the movement is between the hub and carrier (look for movement between the disc and pads as you move the wheel or disc) then the wheel bearing is shot. If the entire hub carrier is moving as well then check the suspension arms. I reckon the bearing though as this is more likely to give the roughness.
'08 Chrysler 300CRD (MB OM 642 engine)
'95 E220 estate
'89 230TE (R.I.P.)