Where to Hang Curtains with Crown Molding?

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Q: We just bought a 1920s condo with lots of neat old detailing. This bedroom had valances/curtains hung on a tension rod. I want to put up something floor-grazing and flowy, but I'm not sure whether to install the rod on or above the molding, or to just stick with the tension rod. The molding comes out about 2 inches from the wall.

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Regina is an architect who lives with her husband and children in Lawrence, KS. As a LEED Accredited Professional and longtime contributor to Apartment Therapy and The Kitchn, her focus is on healthy, sustainable living through design.