Looks great! This is the correct area to wear indeed. Apple states it in their website, that it should be worn above the wrist bone. I have small wrists like you and mine arrives tomorrow (big jump in size from the 40mm AW6 I had).

Most people who complain that the AW (w/e model) is annoying, or that their hand pushes buttons when they bend it, wear it wrong. Their sensor readings are inaccurate as well…