location ~ ^/(.+)$ {
    set $backend "http://$1:80";
    proxy_pass $backend;
}

[error] 7741#0: *1 no resolver defined to resolve http://myservice

location ~ ^/(.+)$ {
        resolver 127.0.0.1:53;
        set $backend "http://$1:80";
        proxy_pass $backend;
}

[error] 9#9: *734 myservice could not be resolved (2: Server failure), client: 127.0.0.1, server: nginx-proxy, request: "GET /myservice HTTP/1.1", host: "localhost:8080"
127.0.0.1 - xxx [30/May/2016:10:34:23 +0000] "GET /myservice HTTP/1.1" 502 173 "-" "curl/7.38.0" "-"

spec:
  containers:
    - name: nginx
      image: "nginx:1.10.0"
      ports:
        - containerPort: 8080
          name: "external"
          protocol: "TCP"
    - name: dnsmasq
      image: "janeczku/go-dnsmasq:release-1.0.5"
      args:
        - --listen
        - "0.0.0.0:53"

Proto Recv-Q Send-Q Local Address           Foreign Address         State       PID/Program name
tcp        0      0 0.0.0.0:8080            0.0.0.0:*               LISTEN      -
tcp        0      0 :::53                   :::*                    LISTEN      1/go-dnsmasq

Starting Nmap 6.47 ( http://nmap.org ) at 2016-05-30 10:33 UTC
Nmap scan report for localhost (127.0.0.1)
Host is up (0.00055s latency).
Other addresses for localhost (not scanned): 127.0.0.1
Not shown: 1997 closed ports
PORT     STATE SERVICE
53/tcp   open  domain
8080/tcp open  http-proxy
53/udp   open  domain