I would go six inches above the window on both sides (or midway between window and ceiling) and outside the current window about six inches, and have the curtain just covering the edge of the window. (a little less than you have now on the left side). I would also get a more substantial curtain rod. What you have is just too small. This is best I could find, but gives you an idea

Honestly, the whole scenario is wrong. (Removed sentence about rods since I just noticed you're getting new ones). I wouldn't go up more than 3", but they do need to go up above the window. Because there's three windows, it looks like you forgot to do the middle one. There should be one panel between each window. The ones at the end, should extend out a bit past the window.

If you really want to stick to your plan with just one at each end, then use either one long rod across all the windows, or put up those shorty rods at the ends and extended out. Rods only at the entire top of the end windows look unfinished somehow.