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I think the forks just arent made for that rack.
Nah they'll go:
Looks like you've got your mudguard stay mounted to the rearmost hole on the pannier rack strut?
If you mount the the mudguard stays to the fork mount you're currently using the rack, then mount the rack above the QR (poss with the aid of a spacer to help clearance) it'll push the front of the rack struts up and they'll be more horizontal.
Sorry that's a bit of a complicated explanation but it's how I mounted my rack to solve a similar problem. I'd take photos of my setup but the bike's in bits.
It's as far forward as it'll go unfortuantely - I can switch the bars around so that the slot is the other way round making them more level, but the panniers dont have that lip at the end to stop them sliding off.
I think the forks just arent made for that rack.