Nginx – Connection Refused Error Nginx Nodejs

I am following this YouTube tutorial on how to configure Nginx Server on Docker but I am getting the following error

proxy_1 | 2018/07/14 22:18:24 [error] 5#5: *1 connect() failed
(111: Connection refused) while connecting to upstream, client:
172.19.0.1, server: , request: "GET / HTTP/1.1", upstream: "http://127.0.0.1:49160/", host: "localhost"

/docker_compose.yml

version: '3'
services:
  nodecluster:
        build: nodecluster
        ports:
        - "49160:8000"
  proxy:
    build: proxy
    ports:
    - "80:80"  

nodecluster/Dockerfile

FROM node:8

# Create app directory
WORKDIR /usr/src/app

# Install app dependencies
# A wildcard is used to ensure both package.json AND package-lock.json are copied
# where available (npm@5+)
COPY package*.json ./

RUN npm install
# If you are building your code for production
# RUN npm install --only=production

# Bundle app source
COPY . .

EXPOSE 8000
CMD [ "npm", "start" ]

proxy/Dockerfile

FROM nginx:alpine

RUN rm /etc/nginx/conf.d/*

COPY proxy.conf /etc/nginx/conf .d/

proxy/proxy.conf

listen 80;
server {
    location / {
        proxy_pass http://127.0.0.1:49160;
    }
}

I googled and looked through different forums for an answer no matter what I tried the connection refused error is still there. The
is up and running and if I access it directly using 127.0.0.1:49160 / localhost:49160 it works but it never get redirected from proxy to 127.0.0.1:49160 or like when I used http://nodecluster:49160/ or whatever.