I prefer to play my Archer Character with the cross-hair disabled, it makes it more fun!

Here is an interesting excerpt from the UESPWiki
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Arrows are not accurate to the centre pointer. The arrow shoots slightly above the cross-hair. Use the archery practice targets to see the exact dynamics for different ranges.
Arrows can be forced to shoot through the centre point by modifying (or adding, if they don't exist) a few lines in Skyrim.ini - (in the My Documents folder).
Setting fVisibleNavmeshMoveDist to a high value (above ~10000) allows the character to hit targets with arrows as far as the arrow can fly, rather than passing through targets (without causing damage) at long distances.

Skyrim.ini
[Combat]
f1PArrowTiltUpAngle=0.7
f3PArrowTiltUpAngle=0.7
[Actor]
fVisibleNavmeshMoveDist=14000.0000

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It really does make a big difference to the game if you make these small adjustments - well worth it!
SoulMasterII

Credit:
UESPWiki
http://www.uesp.net/wiki/Skyrim:Archery